IMF Staff Concludes Visit to Sri Lanka
IMF News, May 23, 2023
Source details
- Canonical URL
- IMF Staff Concludes Visit to Sri Lanka
Other formats
Bibliographic details
- Published: May 23, 2023
Mission summary
- Mission led by Messrs. Peter Breuer and Masahiro Nozaki conducted a staff visit to Colombo from May 11 to 23, 2023 to discuss recent economic developments and implementation of the Fund-supported program.
- Press Release No. 23/167
- May 23, 2023
- End-of-Mission press releases convey preliminary findings after a visit to a country. The views expressed are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion.
- IMF Communications Department — MEDIA RELATIONS — PRESS OFFICER: Ting Yan; Phone: +1 202 623-7100Email: MEDIA@IMF.org
Economic assessment (staff findings)
- The macroeconomic situation in Sri Lanka is showing tentative signs of improvement.
- Inflation moderating.
- The exchange rate stabilizing.
- The Central Bank rebuilding reserves buffers.
- However, the overall macroeconomic and policy environment remains challenging.
Program implementation and conditionalities
- The authorities are making ongoing efforts in meeting key commitments under the Fund-supported program.
- Performance under the program will be formally assessed in the context of the first review of the Extended Fund Facility arrangement, which is expected to be undertaken in September 2023.
- The mission discussed additional fiscal efforts that will be critical to ensure successful revenue mobilization.
- Keeping up the reform momentum and ensuring timely implementation of program commitments are key for Sri Lanka to emerge from the economic crisis.
- Program commitments highlighted include: ensuring central bank independence, improving governance, and protecting the vulnerable.
Debt restructuring
- The mission discussed progress on debt restructuring, noting the ongoing discussions with both foreign and domestic creditors.
- Achieving timely restructuring agreements with creditors in line with the program targets by the time of the first review is essential to restoring debt sustainability.
Engagements and consultations
- The team met with: President and Minister of Finance Wickremesinghe, Governor Weerasinghe, Secretary to the Treasury Siriwardana, senior government officials, members of the opposition parties, CSOs, think tanks, trade unions, the private sector, and development partners.
- The staff thanked the authorities for open and collaborative discussions and look forward to continued close engagement.
Source: Press Release No. 23/167, May 23, 2023 — IMF staff statement on visit to Sri Lanka.
Content in this bundle
- Press Release-English
- Press Release-English