IMF Chief congratulate AKD, reiterates further support

IMF Managing Director Kristalina Georgieva (left) and President Anura Kumara Dissanayake during their virtual meeting late on Friday 

• In virtual meeting stresses importance of strengthening macroeconomic fundamentals with good governance frameworks
• Insists need to persevere with reform agenda to decisively put Sri Lanka on path to sustainable and equitable growth
• Underscores IMF’s role as steadfast partner of Sri Lanka; highlights IMF stands ready to support Sri Lanka
• President reaffirms SL’s commitment to uplift underprivileged while prioritising strengthening of social welfare expenditures 
• Says Govt. is dedicated to enhancing SOEs through improved governance and cost-recovery pricing
• Stresses importance of securing FDIs and support from multilateral partners to reduce debt vulnerabilities and promote sustainable and inclusive growth
• Reassures Govt.’s commitment to successfully complete IMF program

The International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Friday congratulated President Anura Kumara Dissanayake for his progressiveness and reiterated further support to Sri Lanka.

Georgieva made this observation during a virtual meeting with Dissanayake where Sri Lanka’s recent progress in ensuring macro-economic stability was discussed along with necessary measures to address current and future challenges. It also discussed strengthening the partnership between Sri Lanka and the IMF as the country successfully reached the halfway mark of its 48-month Extended Fund Facility (EFF) arrangement which commenced in March 2023.

The IMF Chief congratulated the President for ensuring macroeconomic stability and completing the 3rd review under the EFF, as well as the successful completion of the bond exchange and most of the debt restructuring.

She commended Sri Lanka’s efforts in pursuing key reforms and reaffirmed the IMF’s commitment to supporting Sri Lanka’s economic agenda. Georgieva underlined the importance of strengthening macroeconomic fundamentals with good governance frameworks, especially in the wake of high global uncertainties, slowing global growth, and rising global debt levels.

Georgieva emphasised the need to persevere with the reform agenda under the program to decisively put Sri Lanka on the path to sustainable and equitable growth. She acknowledged that the journey to sustained recovery remains challenging, particularly given rapid global developments in technology and geopolitics.

The Managing Director also underscored the IMF’s role as a steadfast partner of Sri Lanka and highlighted that the IMF stands ready to support Sri Lanka’s endeavours to foster inclusive growth, alleviate poverty, and enhance the quality of life for its people.

President Dissanayake highlighted the significant progress Sri Lanka has made in implementing economic reforms, strengthening macroeconomic stability, supporting the vulnerable and improving governance. The President particularly appreciated the support of the Managing Director, the Senior Management, and the IMF staff during the debt restructuring process. He emphasised the importance of ongoing collaboration to ensure the resilience of Sri Lanka’s economy amidst global economic uncertainties.

President Dissanayake also reaffirmed his commitment to move forward with the IMF program while ensuring that the agreed-upon targets align with the aspirations of the Sri Lankan people, reflecting their strong democratic mandate. 

The President emphasised that the Government remains dedicated to implementing the necessary mechanisms to uplift the underprivileged while prioritising the strengthening of social welfare expenditures as a key policy focus. He highlighted the Government’s dedication to enhancing state-owned enterprises through improved governance and cost-recovery pricing, including for electricity. He also stressed the importance of securing foreign direct investment and support from multilateral partners to reduce debt vulnerabilities and promote sustainable and inclusive growth. President Disanayake reassured the IMF of the Government’s commitment to successfully completing the remaining reviews under the EFF.

Both the President and the Managing Director agreed on the necessity of continued dialogue and cooperation to achieve sustained stability for Sri Lanka. The meeting concluded with a mutual commitment to work together towards a prosperous and sustainable future for Sri Lanka.