Ceylon Chamber commends staff-level agreement on first review with IMF

Saturday, 21 October 2023 00:33 - - {{hitsCtrl.values.hits}}

Calls for continued economic reforms

The Ceylon Chamber of Commerce yesterday congratulated the Government for reaching a staff-level agreement on the first review of Sri Lanka’s Extended Fund Facility Arrangement (EFF) with the International Monetary Fund (IMF).

In a statement, the Chamber said the agreement is set to grant Sri Lanka access to the second tranche, around $ 330 million in financing, pending approval by the IMF’s Management and Executive Board. Another key development is the preliminary debt restructuring agreement with the Export-Import Bank of China, which covers approximately $ 4.2 billion of Sri Lanka’s debt. This agreement also serves as an important component of financial assurances for Sri Lanka.

“While we acknowledge these accomplishments, we urge the Government to maintain the momentum of the current reform agenda to steer the economy toward lasting recovery and stable, inclusive growth,” the Chamber said.

Furthermore, it is imperative to address persistent issues related to governance weaknesses and corruption vulnerabilities. The IMF’s Governance Diagnostic Assessment resonates with the Ceylon Chamber’s own call for reforms in these critical areas.

“We urge Sri Lankan citizens to take ownership of the reform agenda, as collective action is vital to navigate the country’s financial challenges and set Sri Lanka back on a path to growth,” it added.

The Chamber noted that the adherence to these principles will undoubtedly put Sri Lanka back on a trajectory of economic growth and stability.