Sri Lanka: Sixth Review Under the Extended Arrangement Under the Extended Fund Facility and Requests for Waiver of Nonobservance and Modification of Performance Criterion-Press Release; Staff Report; and Statement by the Executive Director for Sri Lanka

November 4, 2019

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Sri Lanka: Sixth Review Under the Extended Arrangement Under the Extended Fund Facility and Requests for Waiver of Nonobservance and Modification of Performance Criterion-Press Release; Staff Report; and Statement by the Executive Director for Sri Lanka, (USA: International Monetary Fund, 2019) accessed November 8, 2024

Summary

This paper discusses Sri Lanka’s Sixth Review Under the Extended Arrangement Under the Extended Fund Facility and Request for Waiver of Nonobservance and Modification of Performance Criterion. The Sri Lankan economy is gradually recovering from the impact of the Easter Sunday terrorist attacks. Growth is projected to strengthen to 3.5 percent in 2020, from 2.7 percent in 2019, as tourist arrivals and related activities gradually recover. Sustaining fiscal policy discipline remains critical to strengthen resilience and support growth, as important downside risks remain, amid heightened external and domestic uncertainty. The Sri Lankan economy is gradually recovering, supported by the authorities’ security and policy efforts to mitigate the impact of the attacks. Nevertheless, the economy remains vulnerable to shocks, given high public debt and low external buffers, with higher downside risks since the attacks, amid heightened external and domestic uncertainty. Sustained policy discipline and efforts to rebuild reserve buffers remain critical to address Sri Lanka’s vulnerabilities and strengthen the economy’s resilience, while supporting investment and growth.

Subject: Anti-money laundering and combating the financing of terrorism (AML/CFT), Central Banks, Credit, Crime, International organization, International reserves, Monetary policy, Money, Public debt, Revenue administration

Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), Credit, Global, IMF's transparency policy, International reserves, Policy discipline, Policy discussion, Policy effort, Reform agenda, Sri Lankan authorities

Publication Details

Pages:

122
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2019/335
Stock No:

1LKAEA2019003
ISBN:

9781513518978
ISSN:

1934-7685

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