The International Monetary Fund (IMF) says Sri Lanka needs to tighten monetary policy, raise taxes and adopt flexible exchange rates to resolve its debt crisis.
Its senior official Anne Marie said this at an online news conference yesterday.
The International Monetary Fund also called on Sri Lanka to take steps to increase tax revenue to meet expenditure requirements.
‘We see the need for flexible exchange rates.’ She also said that monetary policy should be tightened to control inflation.
She has also said that “Last weekend, as well as a few days ago, we had very good, effective, technical discussions with the Sri Lankan authorities regarding the preparations for the talks. Sri Lankan Finance Minister Ali Sabri arrived in Washington last week to talk to the IMF, the World Bank, India and others about providing financial assistance to his country, which has suspended paying $ 51 billion in foreign loan installments. The outcome of the ongoing negotiations will be a breakthrough in debt sustainability.”
