Second review to be completed soon:
Macroeconomic policy reforms beginning to bear fruit:
The International Monetary Fund (IMF) yesterday said that there is “strong expectation” that Sri Lanka will reach a deal with its commercial creditors with the completion of the IMF’s second review.
IMF Communications Director Julie Kozack said that domestic debt operations in Sri Lanka are largely completed, and there is a strong expectation that agreements with commercial creditors consistent with programme parameters will be reached by completion of the second review.
Speaking at a regular press conference held at the IMF headquarters in Washington, Kozack expressed confidence in reaching agreements with commercial creditors consistent with programme parameters. “The next steps on the debt restructuring are to conclude the negotiations with external commercial creditors and to implement agreements in principle with official creditors”, Kozack said at a press conference held at IMF in Washington yesterday.
Kozack further commented that the macroeconomic policy reforms in Sri Lanka are starting to bear fruit, adding that commendable outcomes include rapid disinflation, robust reserve accumulation, and initial signs of economic growth while preserving the stability of the financial system.
“Public finances have strengthened following substantial fiscal reforms, and it is critical that this reform momentum be continued”, she added. .
She said that the IMF’s Executive Board approved the first review of Sri Lanka’s program with the IMF enabling a disbursement of US$337 million on December 12, 2023,
