The Central Bank of Sri Lanka says that the International Monetary Fund expects to disburse its first installment in the first quarter of 2023.
They point out that interest rates can be eased once again through the IMF’s Extended Fund Facility, and the market will once again have an opportunity to expand.
Its officials have emphasized this to the Government Finance Committee recently (23).
When the Committee inquired about the alternative opportunities available for the International Monetary Fund, the officials pointed out that no other International Monetary Fund institution is willing to partner with Sri Lanka in terms of debt management without the International Monetary Fund first intervening for this.
They also pointed out that with the International Monetary Fund’s program, the international community will have the credibility to once again partner with this country for future business opportunities, including debt management.
Therefore, the Central Bank officials pointed out that the support of the International Monetary Fund is essential at this time.
The committee also focused on the social reforms and their impact on complying with the conditions of the International Monetary Fund.
The officials of the Central Bank pointed out here that the International Monetary Fund is constantly concerned about the social impact on low-income communities in society and has adopted certain safeguards, such as limiting government expenditure as much as possible to minimize those impacts.
Dr. Harsha De Silva, Chairman of the Committee, emphasized recently (23) that the objective of the Committee on Government Finance is to stand up impartially for the reforms announced by the International Monetary Fund and implemented by the Central Bank.