IMF facility set to resume in mid-May | Daily News

IMF facility set to resume in mid-May

Manuela Goretti
Manuela Goretti

Sri Lanka’s extended program with the International Monetary Fund (IMF) is expected to go for board approval in mid-May. Based on the important progress to date and the reform plans under the program, the IMF Executive Board will consider in mid-May the authorities’ request to complete the fifth review under the arrangement and extend it by one additional year until June 2020,” an IMF official said.

“This will provide additional time to the authorities to anchor macroeconomic stability and complete their economic reform agenda,” Mission Chief for Sri Lanka, Manuela Goretti said in a statement.

Following the Easter Sunday attacks Goretti said, “We are deeply saddened by the horrific attacks in Sri Lanka and have offered our deepest condolences to the authorities and those that have lost loved ones.

The IMF joins the international community in condemning these atrocious acts of terrorism.”

“Under a lending arrangement with the Fund since mid-2016, Sri Lanka has made important progress in reforming its economy, including by revamping its tax system, strengthening social safety nets, and transitioning to inflation targeting. The 2019 budget approved in early April strikes a good balance between advancing revenue-based fiscal consolidation, which is important to shore up market confidence given Sri Lanka’s high debt and refinancing needs, while making space for macro critical capital and social spending and business friendly tax measures.”

The statement added, “Initial financial market pressures seem to have been contained in the aftermath of the attacks. Decisive policy and security measures by the authorities will be important, in particular for tourism, which accounts for five percent of GDP, to build on the strong performance of recent years.”

Meanwhile, IMF, Managing Director Christine Lagarde in a twitter message said, “We are deeply saddened by the horrific attacks in Sri Lanka and have offered our deepest condolences to the authorities and to all those who have lost loved ones. The IMF joins the international community in condemning these atrocious acts of terrorism.”


 

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