First IMF mission for 2014 in town

Monday, 26 May 2014 00:09 - - {{hitsCtrl.values.hits}}

By Shabiya Ali Ahlam

The International Monetary Fund’s (IMF) first mission for 2014 is in town as part of continuous engagement with the Government and other stakeholders.

President to launch Finance Ministry 2013 Annual Report on Wednesday

President Mahinda Rajapaksa will officiate at the launch of the 2013 Annual Report of the Ministry of Finance and Planning on Wednesday at 10 a.m. at the MILODA Academy of Financial Studies, Colombo 1.

The two-man team which is assisted by the Sri Lankan staff arrived last week on a 13-day visit with the objective of assessing the local economic activity and progress achieved so far. Under the mission ‘IMF Article 4 Post Progress Monitoring,’ the team comprises IMF Mission Head Todd Schneider, IMF Mission Member Jiri Jones and IMF’s Resident Representative Dr. Eteri Kvintradze This is the first IMF mission taking place in Sri Lanka for the year, and the third under the Article 4 Post Progress Monitoring. The first two missions on this were in February and September 2013. A spokesman for the IMF told the Daily FT that while the overall objective of the Article 4 Post Progress Monitoring mission is to get a general feel and idea of the economy and its status in 2014, the team will look at areas such as the Employees’ Provident Fund (EPF), the Central Bank medium term outlook, and tax revenue, among others. Having a fully-packed schedule for the 13-day visit, the two member team met up with Deputy Finance Minister Dr. Sarath Amunugama and Treasury Secretary Dr. P. B. Jayasundera and senior officials of the Central Bank, including Governor Ajith Nivard Cabraal along with the Deputy Governor and Assistant Governors. In addition to the top officials, they will also meet with heads of Economic Research, Domestic Corporation, Public Debt, Statistics, Bank Supervision and Non-Bank Supervision departments during their stay. With financial sector consolidation being one of the key economic activities taking place in 2014, heads of five Non-Banking Finance Institutions (NBFIs) will be given the opportunity to have a discussion with Schneider and Johan. From the banking sector, the team will meet with heads of Commercial Bank and Bank of Ceylon (BOC). The IMF officials will also meet representatives from Ceylon Petroleum Corporation, Ceylon Electricity Board, Inland Revenue Department, Customs, Department of Census and Statistics, Ceylon Chamber of Commerce, Sri Lanka Ports Authority, and a few export industries.

Shuffle of Secretaries

Economic Development Minister Basil Rajapaksa is tipped to get a new Secretary to his Ministry. At present Dr. P.B. Jayasundera is the Secretary to Ministry of Economic Development in addition to the Ministry of Finance and Planning.

Health Ministry Secretary Dr. Nihal Jayathilaka is tipped to be moved to the Economic Development Ministry and current Plantation Industries Ministry Secretary Sudharma Karunaratne will take over at the Health Ministry. There was no indication who would be appointed to Ministry of Plantation Industries.

Pointless to remove PB only from Economic Development: Wimal

The cold war between a key Government coalition ally and its top financial officer continues, with Housing Minister Wimal Weerawansa hitting out against the Government’s alleged removal of Dr. P.B. Jayasundera from his position at Economic Development Ministry. The Minister and Leader of the National Freedom Front who addressed a press briefing yesterday said the removal was “pointless” in light of the other top post he holds at the helm of the country’s economic affairs. Following demands from the NFF, speculation is rife that Dr. Jayasundera has been removed from the Economic Development Ministry and former Secretary to the Ministry of Health Dr. Nihal Jayathilake was being appointed in his place. “The public doesn’t even know he holds the position of Secretary to Economic Development,” the Minister said. “It is nothing more than a toffee. It’s meaningless to remove him from there,” Weerawansa told reporters. Weerawansa maintains the demand for the removal of powerful Treasury Secretary Dr. P.B. Jayasundera is not a condition of its 12 point ultimatum issued to the Government. But the Minister told a press conference yesterday that the NFF believes that if the Government is going to pursue the path his party is showing, it must automatically remove obstacles in the way. The NFF spoke of Dr. Jayasundera only because it was impossible not to do so when they were talking about the economy. (DB)