Colombo: The sustainability of Sri Lanka's economic recovery from 202 bankruptcies largely depends on the reform agenda of the IMF's extended recourse facility arrangement, Central Bank Governor Nandlal Weerasinghe on Tuesday said.
He was commenting on the Central Bank's 2023 annual report released today.
“Since the country is not completely out of the crisis, there is no room for any deviation from the committed path,” Weerasinghe said.
He warned that backtracking on important reforms implemented and planned would lead to instability in the economy, as the island prepares to face presidential elections in the last quarter of this year.
"At the domestic level, what I see as the challenge is a continuation of the same policy regardless of the administration," Weerasinghe said in reference to the impending elections.
President Ranil Wickremesinghe has steered the economy since its 2022 bankruptcy with a series of unpopular reforms.
Weerasinghe said a successful conclusion to the ongoing debt restructuring talks involving US$46 billion is crucial to staying on track for an International Monetary Fund bailout.
Sri Lanka is still tied up with private bondholders which the IMF SAI must conclude by signing the MoU by next month.
“Risks to the outlook are to the downside,” the central bank report said.
“Among them, the most important is the uncertainty associated with the upcoming elections, including any potential impact on fiscal policy and implementation.”
He was commenting on the Central Bank's 2023 annual report released today.
“Since the country is not completely out of the crisis, there is no room for any deviation from the committed path,” Weerasinghe said.
He warned that backtracking on important reforms implemented and planned would lead to instability in the economy, as the island prepares to face presidential elections in the last quarter of this year.
"At the domestic level, what I see as the challenge is a continuation of the same policy regardless of the administration," Weerasinghe said in reference to the impending elections.
President Ranil Wickremesinghe has steered the economy since its 2022 bankruptcy with a series of unpopular reforms.
Weerasinghe said a successful conclusion to the ongoing debt restructuring talks involving US$46 billion is crucial to staying on track for an International Monetary Fund bailout.
Sri Lanka is still tied up with private bondholders which the IMF SAI must conclude by signing the MoU by next month.
“Risks to the outlook are to the downside,” the central bank report said.
“Among them, the most important is the uncertainty associated with the upcoming elections, including any potential impact on fiscal policy and implementation.”
