The International Monetary Fund has confirmed it intends on beginning discussions with Sri Lanka on a program to support the country.
IMF spokesman Gerry Rice said, “The authorities have also indicated that they are actively considering an IMF-supported program and we will discuss with the authorities how best we can assist Sri Lanka going forward, including during the Minister of Finance’s visit to Washington in April.”
On Wednesday, President Gotabaya Rajapaksa in his national address announced that he had given the go ahead for an IMF program after meeting IMF officials in Colombo earlier in the week.
The IMF has already called for tighter monetary policy to stop liquidity injections which create forex shortages.
The IMF has scrutinized Sri Lanka’s economy in a staff report which has been submitted to the board, following annual Article IV consultations.
The full report has not been made public, but key conclusions, include warnings that the economy could implode unless actions were taken to halt monetary instability.
IMF spokesman Gerry Rice has also highlighted the urgent need of implementing a credible and coherent strategy to restore macroeconomic stability and debt sustainability.
(Source: News Radio)