'Bravo, Mr. President!', Says IMF Chief To AKD While Noting That Staying On Course On Reforms Is Crucial

COLOMBO(News 1st); Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), has lauded Sri Lanka's efforts in managing its economic challenges and implementing crucial reforms.

Speaking directly to the President of Sri Lanka, Anura Kumara Dissanaayke, virtually on 7th March, Georgieva expressed her admiration for the country's achievements, particularly in bond management.

"You also have been very effective in dealing with the bonds. That is a truly remarkable achievement. So my very first message to you, Mr. President, is bravo. Congratulations for what you have achieved. I know it is not easy, but perseverance and strength of commitment do pay off," Georgieva stated.

Highlighting the global economic uncertainties, Georgieva emphasized the importance of domestic actions to strengthen the economy.

"We are not globally, we are not in an easy place. And in that sense, taking action domestically to strengthen the economy in this time of more global uncertainty is even more important than it would be if we were in a sort of plain vanilla global economic situation," she noted.

Georgieva also acknowledged the political changes in Sri Lanka and praised the government's commitment to continuing reforms.

"You have been so remarkable in getting out of a very difficult situation and then having political change, but staying the course on reforms. You're right. Very often new governments come and they say, oh, what was before us was all wrong, we start anew. If you were to choose that in Sri Lanka, when we were just at the cusp of bringing the country out of a very difficult situation, it would have been very harmful."

Georgieva expressed her support for the people of Sri Lanka and reiterated the IMF's readiness to assist further. "My heart goes to the people of Sri Lanka. My respect goes to you for what you have achieved. And my second message to you, Mr. President, is if there is anything that you think the fund can do more, if there is any particular area where you would like us to concentrate more on to reach out, we would be very happy and eager to back you fully in what has been a successful."

On the same day, President Anura Kumara Dissanayake in a statement on his official Whatsapp Channel  reaffirmed the government's readiness to advance the IMF program while ensuring alignment with the aspirations of its citizens.

President Anura Kumara Dissanayake held a virtual meeting with the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, on March 7.

During the meeting, he emphasized that strengthening social safety nets for the poor and enhancing public expenditure efficiency remain key government priorities. Additionally, he highlighted the commitment to improving state-owned enterprises, particularly in the energy sector, through better governance and cost-reflective pricing.

The discussion centered on enhancing the partnership between Sri Lanka and the IMF as the nation successfully completed half of the 48-month Extended Fund Facility (EFF) agreement initiated in March 2023.

President Dissanayake expressed his gratitude for the IMF's unwavering support during Sri Lanka's severe economic crisis in 2022.

He highlighted the country's substantial progress in implementing economic reforms, enhancing macroeconomic stability, supporting vulnerable groups, and strengthening governance. The President also acknowledged the crucial role of the IMF's Managing Director, senior management, and staff in the debt restructuring process.

Emphasizing the importance of continued collaboration, President Dissanayake reiterated Sri Lanka's commitment to maintaining macroeconomic stability, completing the third review under the EFF, and successfully concluding the bond exchange and debt restructuring processes.

Georgieva congratulated Sri Lanka on its achievements and commended the nation's efforts in carrying out key reforms. She reaffirmed the IMF's commitment to supporting Sri Lanka's economic policies, particularly in the face of rising global uncertainties, sluggish global growth, and increasing global debt levels. She also underscored the importance of strengthening macroeconomic fundamentals alongside good governance frameworks.

Recognizing the importance of attracting foreign direct investment and securing multilateral support to minimize debt risks and promote sustainable and inclusive development, President Dissanayake reiterated Sri Lanka's dedication to successfully completing the remaining reviews under the EFF.

Looking ahead, IMF Managing Director Georgieva emphasized the need for Sri Lanka to remain steadfast in its reform agenda to ensure a decisive shift towards sustainable and equitable development. She acknowledged the challenges posed by rapid global technological and geopolitical shifts and reaffirmed the IMF's role as a steadfast partner in Sri Lanka's recovery journey. She also reiterated the IMF's unwavering commitment to supporting Sri Lanka's efforts in inclusive development, poverty alleviation, and improving the living standards of its people.

Both leaders agreed on the need for continued dialogue and cooperation to secure a stable and sustainable future for Sri Lanka, mutually emphasizing the importance of working together toward a prosperous and resilient future.