With or without IMF, Sri Lanka needs reforms to fix economy: CB Chief

Thursday, 15 December 2022 03:22 - - {{hitsCtrl.values.hits}}

Sets record straight on bilateral creditor discussions
Affirms discussions not concluded, but made good progress
Says intention is to obtain financial assurance somewhere in January

Central Bank Governor Dr. Nandalal Weerasinghe – Pic by Lasantha Kumara

Central Bank Governor Dr. Nandalal Weerasinghe yesterday said with or without the International Monetary Fund (IMF), Sri Lanka needs to bring in reforms to correct the economy and put it on a sustainable footing.

“As an economy, we need medium- to long-term reforms to restructure the economy,” he said, speaking at the CA Sri Lanka’s Annual Research Symposium yesterday.

The Central Bank Governor also set the record straight on bilateral creditor discussions, citing that it had been miscommunicated.

“During the post-Cabinet meeting media briefing, it has been informed that we have concluded the negotiations with bilateral creditors Paris Club, China, India and Japan. I saw some reports in the media as well. I think it was probably a miscommunication. We have not concluded discussions, but have made good progress. We are in the process of completing it. We intend to obtain the financial assurance somewhere in January,” he stressed.

Dr. Weerasinghe said once the financial assurance is obtained the next step is to present it to the IMF along with our macroeconomic policies. “On that basis, we will be able to stimulate the economy in the short term. But of course, we need long-term reforms and correct policies to fix the imbalances,” he added.

Govt. reiterates anticipation for formal approval from IMF early-2023