The awarding of the third tranche of the IMF to Sri Lanka should not have any negative impact due to Sri Lanka re-negotiating with International bond holders (ISB) again, said former governor of central bank, Dr. Indrajit Coomaraswamy.
He opined this at CT CLSA hosted Virtual Investor Event themed ‘From Crisis to Stability: Sri Lanka’s Economic Restructuring Journey’ yesterday. He said that what the IMF is keener is the manner in which Sri Lanka is implementing the reform agenda and in this regard Sri Lanka has made great progress. “The IMF on many occasions has endorsed and applauded the manner in which Sri Lanka is progressing in this area.”
Dr. Coomaraswamy also recalled that Chief of Staff to the President, Sagala Ratnayake on Tuesday said that the government was confident that they will be able to talk to ISB bond holders and come to a final settlement before the IMF holds their next meeting in June.
“I believe in this stance. Hence I don’t think that the ISB negotiating with International bond holders (ISB) will derail or delay the presenting of around USD 330 million third tranche to Sri Lanka by the IMF in June. He also said that the negative publicity generated in this regard cannot be justified.
Chair – Advocata Institute, Murtaza Jafferjee, said that in order for Sri Lanka not to repeat another economic crisis Sri Lanka must maintain an economic growth rate of over 5%. “This can only be achieved through moving to a ‘productively based’ economy. “lso the country must implement some of the stalled reforms in the power generation and in other sectors whichshould have been done 20 years ago.”
He also said that there should also be a stable global economy and should not have major world shocks for the island to maintain a 5% growth as well. He also said that the property tax is highly justified since currently Sri Lanka pays one of the lowest which is around less than one percent. Lead economist and program leader for Sri Lanka, Nepal and Maldives at The World Bank, Gregory Smith, said Sri Lankan tech entrepreneurs are of very high standard and they should be given more opportunities.
“This is quite evident when you look at the Sri Lankan ICT workforce, especially in the USA.”
Shirajiv Sirimane