Siyambalapitiya says close cooperation with IMF beneficial for Sri Lanka

•  Clarifies proposals will not increase debt but boost Govt. borrowing via T-bills by Rs. 1 t

State Finance Minister Dr. Ranjith Siyambalapitiya said yesterday that the agreements made between the International Monetary Fund (IMF) and Sri Lanka can be made more successful through constant engagement and communication.

He pointed out that the IMF team’s current visit to Sri Lanka is an ideal opportunity for it.

He said Sri Lanka’s commitment to the IMF’s proposals will be monitored before the first review slated for September.

Noting that the proposal presented to Parliament yesterday will not increase the debt limit, Siyambalapitiya clarified that it will only increase the debt limit that the Government can obtain through treasury bills, which is currently at the limit of Rs. 5000 - 6000 billion.

He emphasised that it is beneficial to increase the borrowing limits from treasury bills, which is the method by which the Government can obtain short-term loans domestically under the conditions of high-interest rates.