Monitoring present political crisis in SL - IMF

Monitoring present political crisis in SL – IMF

The International Monetary Fund says it is monitoring the political crisis in Sri Lanka.

When asked about the IMF’s view of the impact of the appointment of Mahinda Rajapaksa as Prime Minister, the Director of the Communications Department of IMF, Gerry Rice said the global lender has taken note of the recent developments in Sri Lanka.

He said “Again the IMF is not in the political realm but clearly we take note of recent developments. We are monitoring the situation closely and we remain in contact with our counterparts at the technical level. I don’t have any assessment as yet on potential program implications there in Sri Lanka.”

Following discussions in September on the fifth review of the Sri Lanka’s economic program supported by a three-year Extended Fund Facility, Sri Lanka should accelerate structural reforms needed to bring transparency, accountability, and cost-efficiency to large state-owned enterprises and push ahead with the previous government’s Vision 2025 to support Sri Lanka’s rapid and inclusive growth.

Claiming that previous government’s “ill-conceived economic and financial policies” have led to the slow economic growth and high cost of living, newly appointed Prime Minister Mahinda Rajapaksa, who is also Minister of Finance and Economic Affairs, announced a ‘Programme for Economic Revival’ with significant tax cuts and a number of appeasing measures.