Bandula addresses misconceptions on IMF deal

Cabinet Spokesman and Minister Bandula Gunawardena clarified several misconceptions during a special media briefing held on Sunday, addressing the misinterpretation of decisions made during the most recent post-Cabinet meeting. 

The briefing aimed to clarify the Government’s position on the International Monetary Fund (IMF) agreement and the Budget process, ensuring that the public understands the financial constraints and commitments that the country must navigate in the coming years.

“It is his responsibility to correct these false statements, particularly regarding the IMF agreement and the country’s financial provisions,” Gunawardena said.

Last Monday, the Cabinet approved a series of measures to overhaul the salary structure in the public sector, set to take effect next year. 

The proposals, presented by President Ranil Wickremesinghe in his capacity as the Finance, Economic Stabilisation and National Policies Minister, were approved and will be implemented through the 2025 Budget.

For the overall salary adjustment, Gunawardena last week said will cost around Rs. 200 billion a year whilst assuring that the initiative is within the parameters of the IMF agreement and will be rolled out in phases within the existing tax framework from 1 January 2025 considering the fiscal space. 

He explained on Sunday that as part of the Extended Fund Facility with the IMF, agreements have been reached to provide funds aimed at aiding budgetary assistance till 2025-27. 

“Thus, aforementioned salary proposal has been made stating that these will not be revised till 2025-27,” he added.

He said the Government has already reached agreements to receive the financial support provided by the IMF and these agreements must be maintained without amendment. 

“Any Government in power must adhere to the commitments made under these agreements,” he pointed out.

Highlighting the importance of the Budget preparation, Gunawardena stated that financial allocations are determined annually, as mandated by the Constitution. 

“This year’s Budget process is particularly crucial, given the upcoming Presidential election on 21 September and the financial provisions should be allocated within 100 days,” he said.