Govt. team arrives in Washington for IMF talks

The Sri Lankan delegation, headed by Finance Minister Mangala Samaraweera, arrived in Washington yesterday to begin talks with the International Monetary Fund (IMF) to put the $ 1.5 billion Extended Fund Facility (EFF) program back on track, Non-Cabinet Minister of Economic Reforms and Public Distribution Dr. Harsha de Silva said.   

“Arrived in DC with @MangalaLK in the first real snowfall this winter for meetings with @IMFNews. Meeting MD @Lagarde and others with Governor @CBSL, Secretary Treasury and officials. Plan to discuss #SriLanka EFF after 52-day imposters derailed it, earned three downgrades, shot up yields and lost $ 1 b reserves,” he tweeted. Minister Samaraweera and other officials will be meeting IMF Managing Director Christine Lagarde, Deputy Managing Director Mitsuhiro Furusawa, Asia Pacific Department Director Chanyong Rhee, Teal Leader Manuel Goretti, and other members of the IMF Sri Lanka Team.  

“Minister Samaraweera is expected to signal the Government’s intention to continue with the IMF reform program. A key objective will be to negotiate the trajectory of continued fiscal consolidation while accommodating policies to support growth and strengthen social safety nets,” the Finance Ministry said last week in a statement. 

The Finance Minister’s delegation to the IMF will include Central Bank Governor Dr. Indrajit Coomaraswamy, Treasury Secretary Dr. R. H. S. Samaratunga, and other key officials of the Central Bank and the Treasury.    

Governor Dr. Coomaraswamy, earlier this month, said the Government has the option of extending the IMF program by a year, describing it as a positive option for Sri Lanka as it looks to fund nearly $ 3 billion in debt repayments this year. 

The Governor also said the Government had already expressed interest in resuming the IMF program, and the Central Bank has already begun discussions towards this end. He also noted that the $ 1.5 billion Extended Fund Facility (EFF) program, which is expected to conclude in June this year, could be enhanced if the Government wishes to do so. However, the first step would be to review the current state of the program before making any decisions.

Govt. to use reserves to repay $ 1 b loan