‘SL in line with IMF recommendations; expects financial stability in country’

By Hiran H. Senewiratne

Sri Lanka is in line with IMF expectations and recommendations and the country will start discussions with all its creditors over the next few months. However, although the IMF would not be interfering in the country’s domestic debt restructuring process, it expects to see financial stability in Sri Lanka, Director of Asia and Pacific Department, IMF, Krishna Srinivasan said.

“Sri Lanka is now in this predicament due to past policy mistakes and other structural issues and the government should adopt proper policies to come out this problem, Srinivasan said at the IMF-convened media conference that was held at the Central Bank auditorium yesterday.

Srinivasan added that the IMF is committed to granting Sri Lanka US $ three billion and of this US $ 330 million has already been given. “We are constantly monitoring Sri Lanka’s progress. Sri Lanka is the first country in Asia wherein the IMF has done a governance diagnostic exercise, which focuses on five specific areas, he said.

The IMF’s role at this time is to support the country out of its debt pain, he said.

(Full report tomorrow)