IMF takes note of Sri Lanka’s recent developments, monitoring the situation closely | Security Risks Asia Made with Humane Club

IMF takes note of Sri Lanka’s recent developments, monitoring the situation closely

Published Nov 05, 2018
Updated Jun 19, 2020

The International Monetary Fund (IMF) says it is monitoring the political crisis in Sri Lanka triggered by the President Maithripala Sirisena’s unexpected dismissal of the elected Prime Minister Ranil Wickremesinghe on October 26 and the appointment of former president Mahinda Rajapaksa to lead the government.

When asked about the IMF’s view of the impact of the appointment of Mr. Rajapaksa as Prime Minister, the Gerry Rice, the Director, Communications Department of IMF said the global lender has taken note of the recent developments in Sri Lanka.

“Again the IMF is not in the political realm but clearly we take note of recent developments,” Rice said.

“We are monitoring the situation closely and we remain in contact with our counterparts at the technical level. I don’t have any assessment as yet on potential program implications there in Sri Lanka.”

Following discussions in September on the fifth review of the Sri Lanka’s economic program supported by a three-year Extended Fund Facility (EFF), the Sri Lanka should accelerate structural reforms need to bring transparency, accountability, and cost-efficiency to large state-owned enterprises and push ahead with the previous government’s Vision 2025 to support Sri Lanka’s rapid and inclusive growth.

Claiming that previous government’s “ill-conceived economic and financial policies” have led to the slow economic growth and high cost of living, the new Prime Minister, who is also Minister of Finance and Economic Affairs, on Thursday (01) announced a ‘Programme for Economic Revival’ with significant tax cuts and a number of appeasing measures.

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