• Cabinet approval for FM to commence talks on technical assistance
• Future engagement to be decided based on IMF conditions

By Chandani Kirinde

Sri Lanka will initially seek technical assistance from the International Monetary Fund (IMF), Cabinet co-spokesperson and Plantations Minister Ramesh Pathirana told journalists yesterday.

He said the Cabinet has given approval for the Finance Minister Basil Rajapaksa to start talks next month but there has been no decision whether to restrict it to technical assistance or move beyond that.

“Cabinet approval has been given to the Finance Minister to go ahead and discuss with the IMF. Their representatives are already in Sri Lanka and we are getting their technical assistance. 

We have to take it from there, look at what sort of conditions they put forward,” Pathirana told the post Cabinet meeting media briefing.

He added the decision on whether to restrict it to technical assistance, advice and other sort of assistance will be decided in the future.

The Cabinet decision coincides with the two-day visit by an IMF delegation led by its Asia Pacific Department Director Dr. Changyong Rhee, Deputy Director Dr. Anne-Marie Gulde-Wolf and IMF Resident Representative for Sri Lanka and Maldives Dr. Tubagus Feridhanusetyawan. 

The delegation called on President Gotabaya Rajapaksa yesterday and Finance Minister Basil Rajapaksa on Monday to discuss ways for a faster stabilisation of the economy and stimulating the growth amidst internal and external shocks as well as fast depleting foreign reserves and other macroeconomic issues.

Discussions centred around key observations in the IMF’s Staff Report released in early March following the Article 4 consultation with the Government.

On 3 March the IMF warned of serious downside risks for Sri Lanka’s socio-economic outlook urging the Government to implement multiple measures to successfully address both immediate and medium-term challenges.

President meets IMF delegation