IMF deal to face Parliamentary test next week

The Government will test the support of all political parties when the Parliament will begin to discuss the Extended Fund Facility (EFF) by the International Monetary Fund (IMF) program next week.

The Cabinet of Ministers at its meeting on Monday cleared to obtain the Parliamentary approval for the provision of the $ 2.9 billion four-year EFF agreement with the IMF.

“The Government’s agreement with the IMF program was presented to the Parliament on 22 March and will be debated next week on key policy measures to be included in the legislative process,” Cabinet Co-Spokesman and Minister Bandula Gunawardena said at the post-Cabinet meeting media briefing yesterday. He said the opinion of all MPs and political parties will be sought on key policy measures that will be implemented. 

The proposal to this effect submitted by President Ranil Wickremesinghe in his capacity as the Finance, Economic Stabilisation and National Policies Minister was approved by the Cabinet of Ministers at its meeting on Monday.

The Government promised tough reforms for the $ 2.9 billion IMF bailout program, which became an obligation after the country’s unprecedented economic crisis due to long-neglected fiscal reforms. 

The program will help Sri Lanka’ to unlock its borrowing ability from its bilateral and commercial creditors. However, the country has to fulfil and implement some harsh policy measures before that process.