The Government will consider providing an additional allowance for public sector employees in the fourth quarter of this year following an assessment of the economic situation in consultation with the International Monetary Fund (IMF), State Finance Minister Shehan Semasinghe told the Media.

He said that after six months, with the restructuring program also in place, the government was expecting an improvement in the economy after which the assessment would be made.

Mr Semasinghe, however, said the tax policy would remain the same and no changes would be made, despite protests. “There are reforms which have been agreed with the IMF and we cannot work beyond them. If we break the agreements it would affect our next installments.”

He said the Government was expecting the first instalment of the IMF’s Extended Fund Facility by the end of this month.

“With the receipt of the IMF facility a full package of about US$ seven billion will be unlocked by giving access to the World Bank, the Asian Development Bank and other agencies,” he said.

The state minister said already the foreign reserves had moved up to US$ 2.2 billion and there were further signs of the rupee appreciating against the US dollar.

Source – The Sunday Times