IMF Executive Board decision on US$ 2.9 b package tomorrow
Sri Lanka is on the verge of getting the first tranche of the crucial International Monetary Fund (IMF) Extended Fund Facility (EFF), a four-year US$ 2.9 billion program after an IMF Board Meeting on March 20.
IMF Chief Kristalina Georgieva who recently held an extensive Zoom discussion with President Ranil Wickremesinghe on this issue, is due to present the bailout program for the country to the IMF Executive Board on March 20. The IMF Executive Board members will meet in person at the IMF Headquarters to discuss Sri Lanka’s request for the EFF, IMF sources said.
The IMF officials are due to brief the international media on their decision regarding Sri Lanka’s request for the EFF the following morning (March 21) around 8 a.m. (US Eastern Time Zone). IMF’s Head of the Debt Capital Market Division for Asia Pacific Peter Breuer and senior IMF official Masahiro Nozaki who led several rounds of discussions with Sri Lankan officials will also participate in the media briefing.
State Ministers of Finance Shehan Semasinghe and Ranjith Siyambalapitiya told the Sunday Observer that they expect positive news from the IMF. The agreement is likely to be tabled in Parliament next week.
Last month, the IMF confirmed that Sri Lanka had received assurances from all its major bilateral creditors, including India and China, whose support for debt restructuring has been crucial to unlocking the IMF support.
State Minister of Finance Shehan Semasinghe said the IMF-backed program would restore the country’s macroeconomic stability and debt sustainability. It will also encourage other multilateral and bilateral donors to extend further loans for projects, some of which have been put on hold.He said it would be necessary to safeguard financial stability, protect the vulnerable, and accelerate the structural reforms to unlock Sri Lanka’s growth potential in the long term.
President Wickremesinghe said recently that Sri Lanka has fulfilled all the 15 conditions put forward by the IMF to gain the EFF. Sri Lanka has sought IMF assistance on 16 previous occasions under different Governments.
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Minister of State for Finance Mr. Shehan Semasinghe claims that for the first time, government institutions have been allowed to use the services of private banks.
“We authorised them because we cannot afford to allow any breakdown in the country’s financial processes,” he said. “The Government will take every precaution to ensure that trade union strikes do not disrupt the normal life of the people.”
The Government will not allow any trade union actions to disrupt the financial processes involved in obtaining essential items, including food, fuel, and coal, he said. The Minister was responding to the recent strikes by certain trade unions and how the Government will face them if they continue such trade union action.
“When the IMF negotiations were taking place last year, they blocked the gates of the Finance Ministry. They did so to prevent the Secretary to the Treasury from joining the IMF-Government discussions and to delay the progress in IMF bailout talks,” the Minister said.
“When the IMF’s Managing Director announced that they are looking at Sri Lanka positively and recognised the Government’s commitment, determination, and transparency, in the last eight days, the trade unions have come out on the streets for demonstrations.
We also asked him if these Trade union actions were causing any revenue losses. “Yes, undue trade union actions will affect the economy. These trade union actions are unfair. What the people in this country experience now differs from what they experienced eight months ago.”
He said all should be genuine enough to understand the country’s improvement. These trade union actions have nothing to do with taxes or Government reforms.
“It is evident that on the verge of receiving IMF approval, many political authorities and Opposition party leaders have become uncertain about their chances of accomplishing their political ambitions,” said Semasinghe.
He said they would only be able to promote their political ideology with much lower intensity than they had about eight months ago. However, they might spread their political ideology by ensuring the people suffer as much as possible.
State Minister of Indigenous Medicines Sisira Jayakody said that the Local Government Election will not be held on April 25 and a presidential election will be held in November.
He said addressing the inauguration ceremony of the Suvadharani Deepa medical clinic series at Jayathilakararama temple in Peliyagoda yesterday that they will hold local government elections as soon as possible.
“We do not want to postpone elections. Postponing elections in a democratic country is not appropriate. We will hold local government elections as soon as possible. However it is unlikely that local government polls will be held on April 25. I can say that the presidential election will be held in November,” he said.
“There are about 8,000 members of local government bodies across the country and it is a burden to the country. A commission was appointed and steps were taken to reduce the number of members. Ready to proceed as soon as the report is received,” the State Minister said.
(dailymirror)
The Geological Survey & Mines Bureau (GMSB) says two minor tremors were reported in Sri Lanka since last evening.
The first minor tremor with a magnitude of 2.6 on the Richter scale was felt in Kirinda last evening (March 18) while the second one, with a magnitude of 3.0, was reported in Gomarankadawala this morning.
