Sri Lanka: Request for an Extended Arrangement Under the Extended Fund Facility-Press Release; Staff Report; and Statement by the Executive Director for Sri Lanka
IMF Staff Country Reports, March 20, 2023
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- Sri Lanka: Request for an Extended Arrangement Under the Extended Fund Facility-Press Release; Staff Report; and Statement by the Executive Director for Sri Lanka
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Bibliographic details
- Published: March 20, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400238987.002
Program objectives and overview
- Presents Sri Lanka’s Request for an Extended Arrangement under the Extended Fund Facility (EFF).
- Objectives of the EFF-supported program:
- restore macroeconomic stability and debt sustainability,
- safeguard financial stability,
- step up structural reforms to unlock Sri Lanka’s growth potential.
- Program measures are designed to protect the most vulnerable and improve governance.
Macroeconomic policy guidance and measures
- Fiscal and monetary stance:
- Emphasis on staying committed to the multipronged disinflation strategy to safeguard the credibility of the inflation-targeting regime.
- Exchange rate and reserves:
- Greater exchange rate flexibility recently introduced by the authorities is expected to help rebuild the reserve buffer as market confidence returns.
- Financial stability:
- Safeguarding financial stability is an explicit program objective.
Governance, anti-corruption, and institutional reforms
- Ongoing efforts to tackle corruption should continue, including revamping anti-corruption legislation.
- The ongoing IMF governance diagnostic mission assessing Sri Lanka’s anticorruption and governance framework should guide a more comprehensive anti-corruption reform agenda.
- Improving governance is highlighted as integral to program success.
Debt treatment and creditor engagement
- Close collaboration between Sri Lanka and all its creditors is critical to expedite a debt treatment that will restore debt sustainability consistent with program parameters.
Subjects and keywords (as provided)
- Subject: Fiscal consolidation, Fiscal policy, Foreign exchange, Inflation, International organization, Monetary policy, Prices, Public debt, Revenue administration
- Keywords: arrears to Iran, Fiscal consolidation, Global, IMF program parameter, Inflation, LIOA policy, staff appraisal, staff supplement
Content in this bundle
- 1lkaea2023001