SL close to wrap-up discussions for Staff-Level Agreement with IMF: CB Chief

Friday, 8 July 2022 05:17 - - {{hitsCtrl.values.hits}}

Central Bank Governor Dr. Nandalal Weerasinghe yesterday said Sri Lanka is close to wrapping up discussions for a Staff-Level Agreement with the International Monetary Fund (IMF).

He confirmed the discussions with the IMF linked to monetary targets have been closed and agreed upon, though the fiscal targets and measures are still ongoing.

“As per my understanding they are almost close to completing the discussions,” he told journalists yesterday.

Following the conclusion of the IMF staff visit to Sri Lanka last week, further discussions were resumed on certain areas virtually on Tuesday.

“There is nothing open on the monetary policy side, including monetary stance and reserve targets. We have agreed on all aspects and reached an agreement,” he told journalists yesterday.

However, when asked about the areas that are currently being discussed with the IMF, the Central Bank Governor said he cannot comment on them, as it relates to the fiscal policy.

In terms of the debt restructuring, Dr. Weerasinghe said they were continuing discussions with the legal and financial advisors simultaneously.

“IMF staff and our financial and legal advisers held several rounds of talks and shared details. Upon the debt sustainability analysis, the advisors will seek the types of relief or restructuring that should be negotiated with different creditors. The process is going on and we are making some progress,” he explained.

He also said that the Central Bank and the Finance Ministry maintain their parameters for external debt restructuring only.

Despite the debt restructuring negotiations continuing, the Governor was of the view that a Staff-Level Agreement with the IMF could be reached shortly.

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