Central Bank says ready to cooperate with IMF

Monday, 28 March 2022 03:05 - - {{hitsCtrl.values.hits}}

Issues statement on IMF Article IV Report
Says several recommendations made by IMF have already been implemented

With the Government seeking a closer engagement with the International Monetary Fund (IMF), the Central Bank said it stands ready to cooperate in such a commitment, whilst highlighting that some of the recommendations made by the IMF have already been implemented.

“Several policy adjustments have already been made by the Finance Ministry and the Central Bank,” the banking regulator noted in a statement.

It said these include monetary policy tightening since August 2021, allowing exchange rate flexibility, removing restrictions on foreign exchange market transactions, implementing envisaged revenue-enhancing measures, and allowing market-based price adjustments to key commodities prior to the IMF recommendations.

“The Central Bank has continued to publish its analysis, in addition to providing further in-depth analysis on policy matters and engaging in a continued close dialogue with the Government on the same,” it said.

As per the published IMF Article IV Staff Report on Sri Lanka, the process included,

A visit to Sri Lanka by an IMF staff team in December 2021 during which consultations were held with the Finance Ministry and the Central Bank, as well as several other Government agencies, financial institutions, private organisations, and individuals
Further clarifications were sought by the staff team upon their return to the IMF headquarters
Discussion at the Executive Board of the IMF on the Article IV Report, by which time the Sri Lankan authorities had consented in principle to the publication of the Report
A press release being issued by the IMF upon conclusion of the Executive Board discussion
IMF team visiting the country to appraise the President of the findings of the Article IV consultation
The final clearance being provided by the Sri Lankan authorities
The publication of the final report on 25 March