Siyambalapitiya addresses misconceptions on IMF agreements, SOE restructuring

Tuesday, 14 May 2024 00:00 -     - {{hitsCtrl.values.hits}}

State Minister of Finance Ranjith Siyambalapitiya yesterday addressed misconceptions surrounding International Monetary Fund (IMF) agreements and the Government’s approach to State-Owned Enterprises (SOEs) restructuring, urging clarity and factual understanding among political leaders and the public.

He criticised certain party leaders for making baseless promises to amend IMF agreements after obtaining a mandate, insisting the need for transparent explanations on viable methods to advance the country while reducing taxes and Government revenue.

Highlighting the Government’s proactive stance, the State Minister revealed plans for a SOE restructuring policy, with a corresponding bill set to be presented to Parliament soon. “The aim is to elevate SOEs to a profitable, competitive and international standard,” he added.

Siyambalapitiya outlined various strategies, including reinvestment activities such as selling shares, changing management, and adopting cooperative systems tailored to each business’s needs.

Addressing misinformation propagated by other political parties, Siyambalapitiya clarified that the IMF has not imposed a 20% rate on the Government for debt repayment. “Instead, agreements have been made to ensure sustainable debt repayment and boost fiscal resilience by 2032. The Government’s financial target aims to limit the total debt to 95% of the gross domestic product, signalling a commitment to prudent fiscal management,” he said.