Delays in governance and transparency reforms in Lanka’s IMF bailout programme, says Verité Research tracker

Verité Research has observed delays in governance and transparency reforms in Sri Lanka’s initial commitments under its International Monetary Fund (IMF) bailout programme, even though it has met most of its commitments.

Verité Research, which tracks Sri Lanka’s progress under the Extended Fund Facility (EFF) programme via its online platform “IMF Tracker,” has reported that, of the 73 commitments due by the end of November 2023, 60 have been met, albeit with some delays. However, 13 commitments remain unfulfilled, raising concerns about Sri Lanka’s commitment to crucial reforms.

Five of these were irreversibly missed and cannot be carried forward, while eight have been deferred to the second phase of the programme leading up to the next IMF review. Adding to the complexity, the IMF has modified due dates for an additional 27 commitments, initially set for after November, categorising them as “pending” alongside the eight carried-forward obligations. Moreover, Sri Lanka and the IMF have added 75 new commitments to the programme.

Consequently, the second phase of the EFF kicks off with a staggering 110 commitments hanging in the balance. Notably, four specific governance and transparency-related commitments remain unfulfilled, including the launch of an online transparency platform for public procurement and tax exemptions, and the establishment of a merit-based selection process for directors of the anti-corruption commission.

The IMF Tracker is an online tool that monitors the progress of government commitments in Sri Lanka’s 17th IMF Programme. The tracker is updated on a monthly basis.