COLOMBO: Running is the key to Sri Lanka's transition from stabilization to full economic recovery, the IMF said on Friday after deciding to release the third tranche of US$336 million of a US$2.9 billion four-year bailout package for the island. The pace of improvement has to be maintained. Nation.
While releasing the third tranche, the IMF on Thursday said Sri Lanka's economy has begun to recover, inflation remains low, revenue collections are improving and reserves are accumulating, but warned that these positive developments Regardless, "the economy is still weak and the path to debt sustainability remains a knife-edge."
“We encourage the (Sri Lankan) authorities to build on these hard-won achievements and remain steadfast in their reform commitments,” Peter Breuer, head of the IMF mission to Sri Lanka, told reporters here on Friday.
In April 2022, Sri Lanka declared its first sovereign default since gaining independence from Britain in 1948.President Ranil Wickremesinghe's predecessor Gotabaya Rajapaksa was forced to step down in 2022 due to an unprecedented financial crisis.
The IMF is emphasizing action to maintain the pace of reforms and debt sustainability in Sri Lanka and has pushed for the rapid finalization of MoUs with lenders, including China's Exim Bank.
However, the reforms have faced political resistance as opposition parties have promised to revise the International Monetary Fund (IMF) program claiming it has burdened the public affected by the economic crisis.
With presidential elections coming up at the end of the year, Breuer said: "...I reiterate from my perspective that achieving the objectives of the program is essential to give Sri Lanka a chance to emerge from one of the worst crises in its history. is a key priority. There will therefore be different proposals on how to achieve this and we are keen to hear different views on how these program objectives can be reached.
While releasing the third tranche, the IMF on Thursday said Sri Lanka's economy has begun to recover, inflation remains low, revenue collections are improving and reserves are accumulating, but warned that these positive developments Regardless, "the economy is still weak and the path to debt sustainability remains a knife-edge."
“We encourage the (Sri Lankan) authorities to build on these hard-won achievements and remain steadfast in their reform commitments,” Peter Breuer, head of the IMF mission to Sri Lanka, told reporters here on Friday.
In April 2022, Sri Lanka declared its first sovereign default since gaining independence from Britain in 1948.President Ranil Wickremesinghe's predecessor Gotabaya Rajapaksa was forced to step down in 2022 due to an unprecedented financial crisis.
The IMF is emphasizing action to maintain the pace of reforms and debt sustainability in Sri Lanka and has pushed for the rapid finalization of MoUs with lenders, including China's Exim Bank.
However, the reforms have faced political resistance as opposition parties have promised to revise the International Monetary Fund (IMF) program claiming it has burdened the public affected by the economic crisis.
With presidential elections coming up at the end of the year, Breuer said: "...I reiterate from my perspective that achieving the objectives of the program is essential to give Sri Lanka a chance to emerge from one of the worst crises in its history. is a key priority. There will therefore be different proposals on how to achieve this and we are keen to hear different views on how these program objectives can be reached.
