G.L. blames Govt. for stalling second IMF tranche

Tuesday, 3 October 2023 00:00 - - {{hitsCtrl.values.hits}}

Says delay in receiving second loan tranche is a double setback for SL
Claims erosion of trust with IMF is far greater than loss of financial aid
Stresses having an agreement with IMF is advantageous for SL when attracting investors
Assures a new Govt. will renegotiate IMF deal next year

Freedom People’s Congress (FPC) member Prof. G.L. Peiris yesterday criticised the Government, holding it responsible for the IMF’s decision to delay the disbursement of the second tranche of financial aid, which amounts to $ 330 million for Sri Lanka.

“The delay in receiving the second loan tranche from the International Monetary Fund (IMF), without any specified date for its disbursement, is a double setback given the substantial size of the funds that the country was supposed to receive,” he remarked.

He emphasised that this postponement would result in a significant financial setback for the country, and an even more substantial loss would be the erosion of trust that had been established with an organisation like the IMF.

“The loss of the international community’s confidence from the fact that Sri Lanka had signed a lasting agreement with the IMF and has not executed it is far more serious than not receiving the second tranche,” he claimed. He highlighted that having an agreement with the IMF is more advantageous for Sri Lanka when attracting investors to the country.

“IMF representatives have conveyed that they opted to delay the disbursement of the second tranche because the expected tax revenue goals were not met. The Government should assume full responsibility for the suspension of the second IMF tranche,” Peiris added.

Peiris further said that a new Government likely to be elected next year will engage in discussions with the IMF once more and work to eliminate proposals that are adversely affecting the public.