President willing to convene an all-party dialogue with IMF Managing Director

President Ranil Wickremesinghe last week extended an invitation to all political party leaders in parliament to engage in discussions with the Managing Director of the International Monetary Fund (IMF) on the implementation of Sri Lanka’s Extended Fund Facility programme with the IMF.

Emphasizing the importance of unity in leading the country to recovery and growth, he highlighted that withdrawing from the IMF agreement would jeopardize the trust of international stakeholders in Sri Lanka’s economy.

The President stressed that the nation’s economy suffered due to the politics of promises, emphasizing the need for all political parties to formulate comprehensive plans for the country’s development when gearing up for upcoming elections.President Wickremesinghe made these remarks during the International Customs Day celebrations at the Colombo Customs Headquarters on Jan. 26.

Speaking further he said:

“I convey my thanks to all members of the Customs Department for their contributions to the Customs revenue in 2023. Customs tax, VAT and income tax are the three primary sources of income for governments across the globe. So, enhancing the efficiency of Customs services to boost a country’s revenue is vital. Therefore, the intended government legislation and modernization initiatives will help overhaul all public revenue-generating institutions in the country.”

“In the contemporary landscape of international trade agreements, regional trade agreements and free trade agreements, our focus should be on enhancing income. To achieve this, the current Customs services need to operate with efficiency. While we are unable to allocate additional staff to your department, your commendable performance highlights the potential for substantial revenue improvement. There is a considerable journey ahead, and the government is firmly committed to the comprehensive modernization of Customs and other revenue departments, which includes the imminent introduction of new legislation.”

This initiative is a crucial component of the measures undertaken to steer the country out of the economic crisis. The decisions made in 2023 have paved the way for recovery from the economic downturn of 2022, although the journey is on-going. By the end of this year, our aim is to elevate the country’s income to 12% of the GDP. By 2026, we target a further increase to 15%.”

To achieve this, income must be generated from the existing economy, necessitating economic development. The pressing question today is how to facilitate this economic growth. The outdated economic system is incapable of propelling the country forward. The reliance on daily loans led to the collapse of the country’s economy. It is imperative to overhaul this economic system for sustainable progress.”

“Our actions today will shape the future. So, political parties should engage in meaningful dialogue, especially when preparing for elections, understanding the intricacies of the country’s challenges. It is imperative to carefully consider the future trajectory of our nation’s economy through open discussions.”

“Our country has recently entered into an agreement with the International Monetary Fund, a pact signed by numerous countries, including 15-20 others. It is an agreement we cannot simply walk away from, necessitating collective discussion and consideration. However, the unfortunate reality is that our political landscape often resembles the fleeting nature of “papadam” —put in the pan, enjoyed when it blooms, and soon forgotten. The cycle repeats, with new issues emerging, gaining momentary attention, and eventually fading into oblivion.”

“Hence, I urge all political party leaders in parliament to engage in discussions regarding our stance on the agreement with the IMF and whether any amendments are deemed necessary. Following these discussions, I am willing to extend an invitation to the Managing Director of the IMF to participate in a collective dialogue here. Let us collaboratively explore different perspectives and propose modifications if deemed beneficial. While the amendment process is open for consideration, it is imperative to acknowledge the existing agreement and work towards its implementation,” the President said.