IMF Package For Sri Lanka: No Impositions, No Treasury Burden

COLOMBO (News 1st); The IMF Executive Board on Friday (28) completed the Third Review under the 48-month Extended Fund Facility with Sri Lanka, providing the country with immediate access to about US $334 million to support its economic policies and reforms.

Commenting on the development on 1st of March, Deputy Minister of the Sri Lankan Government Professor Anil Jayantha clarified that the IMF did not impose any conditions on the government, instead their main concern was that the government treasury should not bear the unncessary costs of SOEs.

"The IMF's concern is that the Treasury should not bear unnecessary costs of SOEs. We have had bad experiences with corruption and unnecessary borrowing, particularly with Sri Lankan Airlines," he stated.

The Deputy Minister speaking at a press conference said that the IMF emphasized a disciplined approach to restructuring, which does not necessarily mean selling off assets.

Prof. Jayantha mentioned that a committee has been appointed to oversee the SOEs and make decisions on managing them efficiently without burdening the Treasury.

The objective is to ensure that these enterprises provide goods and services at affordable rates and maintain high quality, avoiding market failures and oligarchies.

Regarding the key benchmarks to be accomplished before the next IMF review, Prof. Jayantha indicated that the fourth review would start in April, following the release of the fourth tranche.

"While continuing with existing benchmarks, some alterations can be made depending on the requirements. We are open to discussions and will assess the situation accordingly," he added.

Addressing the issue of corruption, Prof. Jayantha acknowledged that progress is being made on anti-corruption laws. "The anti-corruption law is in process, and the necessary drafts are being prepared," he confirmed.