• Asserts IMF plan must be obliged by all political parties, irrespective of colours, ideologies
• Insists on continuing with program, warning any deviation will have tragic economic outcome
• Says resumption of projects halted will result in an inflow of around $ 7 b foreign funds
• Hails President Ranil Wickremesinghe’s courage to live up to challenges, commitments to introduce vital economic reforms to obtain IMF assistance to overcome crisis

By Charumini de Silva

Cabinet Co-Spokesman and Minister Bandula Gunawardena yesterday suggested taking a vote in Parliament to understand how many parties are in agreement with the International Monetary Fund (IMF) program supporting Sri Lanka to overcome the economic crisis.

Noting that the conditions of the IMF program will soon be tabled in Parliament, he emphasised that the plan must be obliged to be implemented irrespective of political parties, colours or ideologies. 

“Sri Lanka has sought IMF assistance 16 times before, but halfway through under different administrations we have deviated from the original program and ended up in the current situation. Therefore, a pledge of support from all parties in Parliament is necessary to ensure that the IMF program to bring in essential economic reforms will be implemented irrespective of political parties and preferences,” he said.

Gunawardena also warned that if the administration deviates again, the fate of the economy will have tragic consequences.

“The approval of the Extended Fund Facility (EFF) from the IMF is a hallmark of trustworthiness for Sri Lanka. This is a great indication to the world that we can be considered a worthy and credible economy to continue with international trade activities. This will now enable us to resume some of the projects that were halted during the past year,” he added.

He noted that the projects funded by the World Bank, Asian Development Bank, bilateral and multilateral institutions will soon be resumed, which in turn will also see an inflow of around $ 7 billion in foreign funds.

Gunawardena said in the event Sri Lanka’s proposal was not accepted by the IMF Board of Directors, the country would be gone into anarchy.

 “The people of Sri Lanka are lucky because we have got another chance to put our economy on the right track and President Ranil Wickremesinghe surely had the strength of will and a solid backbone to live up to the challenges and commitments to bring in vital economic reforms to obtain the IMF assistance to overcome the financial crisis,” he stressed.

The Cabinet Co-Spokesman however clarified that the EFF approval does not mean that the debt restructuring has been solved, noting that it is the second phase of the program.

 “The EFF will first help Sri Lanka to stabilise the economy, public financial management, reduce corruption and vulnerabilities by improving fiscal transparency. But the debt restructuring process will commence as the second step,” he explained.

The Minister also said IMF has also enabled the EFF to be used for budgetary purpose, for the first time in recognition of the challenges faced by Sri Lanka.  

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