Commenting on the International Monetary Fund (IMF) Article IV Staff Report on Sri Lanka, the Central Bank (CB) stated that it has continued to publish its analysis, and provided further in-depth analysis on policy matters to the Government and has been engaging in a continued close dialogue with the Government.
In a media communiqué, the bank stated that several policy adjustments by the Ministry of Finance and the CB had already been made which include monetary policy tightening since August last year, allowing exchange rate flexibility, lifting restrictions on foreign exchange market transactions, implementing revenue enhancing measures, and allowing market-based price adjustments for key commodities.
With the Government indicating that it is seeking a closer engagement with the IMF, the CB stands ready to cooperate in such an engagement, the release stated.
Finance Minister Basil Rajapaksa with senior ministry officials is due to meet IMF officials in Washington next month.
Minister Rajapaksa held discussions with a top IMF official this month and sought help from the global lender to spur its fast plunging reserves and tackle its sliding currency and growing inflation.
The Article IV process included:
(a) a visit to Sri Lanka by an IMF staff team in December last year during which consultations were held with the Ministry of Finance (MoF) and the Central Bank, and several other Government agencies, financial institutions and private organisations and individuals,
(b) further clarifications sought by the staff team upon their return to the IMF headquarters,
(c) discussion at the Executive Board of the IMF on the Article IV Report, by which time the Sri Lankan authorities had consented in principle to the publication of the Report
(d) a press release being issued by the IMF upon conclusion of the Executive Board discussion,
(e) an IMF team visiting the country to apprise the President on the findings of the Article IV consultation,
(f) the final clearance being provided by the Sri Lankan authorities, and
(g) the publication of the final Report on March 25.