IMF and CB see eye to eye

Showing a common mindset, the International Monetary Fund (IMF) yesterday commended the Central Bank for its commitment to flexible policies that resulted in a depreciating rupee and reducing the current account deficit.

IMF Country Representative Dr. Koshy Mathai delivering a presentation titled ‘Sri Lanka’s Economy: Prospects and Challenges in a Still Unsettled World’ pointed out that the Central Bank’s steps were valid to ensure a sustainable economy and reduce burgeoning trade deficit.

“It is necessary to have a slowdown of growth rather than having rapid growth that cannot be sustained. Much better is to have a sustainable economy. It is true that people are suffering because of uncertainty but we believe that the problem was in the past where trouble was brewing and it was not being addressed. However, now policies have been taken that can adequately address these challenges.”

Dwelling extensively on the fiscal and monetary policies, he also insisted that foreign exchange levels need to be monitored closely and the Central Bank needs to respond to what it sees giving importance to the commitment on flexibility.

He also remarked that the Central Bank had taken the right call in seeking foreign funds as well as reducing the current account deficit.