IMF reaffirms commitment to support Sri Lanka- Mission spokesman | Sunday Observer
Team visit from June 20-30:

IMF reaffirms commitment to support Sri Lanka- Mission spokesman

19 June, 2022

The International Monetary Fund (IMF) team will visit Colombo from June 20-30 to continue discussions on an economic program that could be supported by an IMF lending arrangement, building on the progress made during the May 9-24 virtual mission, said a spokesman for the IMF Mission in Sri Lanka on Friday.

He said the IMF reaffirms its commitment to support Sri Lanka at this difficult time, in line with the IMF’s policies.

The global lender has insisted that Sri Lanka should focus on debt restructuring and fiscal reforms prior to seeking a bailout program.

Central Bank Governor Dr. Nandalal Weerasinghe told the BBC in an interview recently that the country would not have been in this predicament had it sought support from the IMF a year ago.

Sri Lanka is undergoing an unprecedented economic crisis which has led to an acute shortage of food, fuel and medicine in the country.

A team of the International Monetary Fund led by Peter Breuer and Masahiro Nozaki conducted a virtual mission with the Sri Lankan authorities from May 9-24 on an economic program that could be supported by an IMF lending arrangement.

The IMF team met Prime Minister Ranil Wickremesinghe at the concluding meeting, following technical discussions with the economic team led by Central Bank Governor Dr. Nandalal Weerasinghe and Secretary to the Treasury Mahinda Siriwardana. The team also met representatives of the private sector, the financial sector, and development partners.

At the conclusion of the mission, the IMF team issued the following statement:

“Sri Lanka is facing difficult economic conditions and severe balance of payments problems. Recent economic indicators suggest that economic activities have been negatively affected by fuel and power shortages. Rising global food and oil prices have further added to the balance of payments pressures.

Inflation has accelerated driven by many factors, including the shortage of goods, fuel price increases, and currency depreciation. In this context, we are deeply concerned about the impact of the ongoing crisis on the people, particularly the poor and vulnerable groups.”

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