IMF, WB on board with Maithripalanaya: Ravi K

Monday, 23 February 2015 00:23 - - {{hitsCtrl.values.hits}}

By Channa Fernandopulle The International Monetary Fund (IMF) and the World Bank have extended their support to the Government’s program of good governance, according to Finance Minister Ravi Karunanayake.

Speaking shortly after his return from Washington at the 21st Annual Awards of the Institute of Chartered Shipbrokers on Friday, Karunanayake stated that representatives from both institutions had expressed support for the 100-day program and beyond subsequent to receiving assurances of fiscal discipline and transparency. “The abundance of confidence placed in the new Government helped us to overcome some of the major problems we had such as the depleted reserves that we had. We managed to convince them that a financial discipline oriented Government has come in to stay. Not only did we give our promise to the people of this country but we have also brought financial discipline into the system,” Karunanayake stated.

In that context, he confirmed that IMF support would be extended to support Sri Lanka’s balance of payments position while the World Bank would continue to fund ongoing infrastructure development projects in the country. “The IMF and the World Bank both gave us the sense of confidence we need to go ahead with the ambitious and robust policies that we intend to bring in within the next couple of months and we will be supported financially from the World Bank for major projects as well as the IMF, for support in the balance of payments. “Although we’ve run through some bad times, the balance of payments is sound today, but we were given the comfort factor that if anyone tries to meddle around with the economy, that they (the IMF and World Bank) will stand with us all the way so we’re hoping to be strong and able to withstand any vicissitudes that may occur,” he asserted.

IMF team in town

A team from the International Monetary Fund (IMF) will be in town from today until 4 March as Sri Lanka prepares to seek concessionary financing to tide over fiscal and balance of payment problems. What is called the Post-Program (after the $ 2.6 billion Standby Arrangement) Monitoring Mission led by Todd Schneider and IMF Asia Pacific Department Director Changyong Rhee will be in town for discussions with senior officials. Last week Finance Minister Ravi Karunanayake met with IMF Managing Director Christine Lagarde where discussion about recent economic developments in Sri Lanka and the near-term outlook took place. IMF said the Post-Program Monitoring Mission is expected to be followed by IMF technical assistance missions focused on tax policy and administration, public financial management and financial sector supervision. Management level dialogue will continue on the occasion of the Spring Meetings of the IMF and the World Bank in April.