Central Bank Governor Confident in IMF Program Success

COLOMBO (News 1st); Sri Lanka's Central Bank Governor expressed confidence in the progress of the International Monetary Fund (IMF) program and the ongoing debt restructuring efforts.

When asked about the upcoming IMF review, Dr. P. Nandala Weerasinghe highlighted the positive feedback received from the IMF regarding the program's performance.

"The IMF has expressed satisfaction with our progress so far. Their recent statements and board assessments have been very positive," he noted during an interview with Bloomberg on Wednesday (26). Dr. Weerasinghe emphasized the importance of continuing on the current path, focusing on fiscal consolidation, revenue-based reforms, and addressing governance and corruption issues.

"So from the IMF point of view, I think what's important is to stay in the same path, maintain the kind of reforms that government has agreed in terms of cost recovery pricing, implementing all the governance reforms, revenue-based fiscal consolidation, meeting the revenue targets as we agreed with the government, with the IMF commitment to meet all the targets and implement all the necessary," he added. Dr. Weerasinghe expressed confidence in the administration's commitment to these goals, which he believes will be positively received by the IMF.

Regarding debt restructuring, Dr. Weerasinghe reported significant progress, particularly with euro bonds and bilateral agreements.

"We have completed the restructuring of euro bonds, and new instruments are trading well in the market. We are in the process of finalizing bilateral agreements with countries including India, China, and members of the Paris Club," he explained. Japan has already signed and completed agreements, and similar progress is being made with other countries.

Dr. Weerasinghe assured that the process of finalizing these agreements is ongoing and expected to be completed soon. "This is a normal process, and we are confident in our ability to finalize these agreements with each country," he stated.

The Governor's remarks underscore the steady progress Sri Lanka is making in its economic recovery and the positive outlook for future stability and growth.