Sri Lanka not interested in IMF- drawn up policy package: CBSL Governor

by Sanath Nanayakkare

Sri Lanka has been maintaining its relationship with the IMF to date on a technical level but would not seek to enter into an IMF loan programme as it would bind the country for an IMF policy package, Professor W. D. Lakshman, Governor of the Central Bank said yesterday at a webinar hosted by the Central Bank of Sri Lanka to explain the status of the economy as per its Annual report 2020.

“A policy decision has been taken on the basis of a careful study of what has happened over the past 20-30 years during which period we have run about 16- 17 different IMF programmes. It is true that we have not pursued {neatly} the IMF recommendations. Yet we had these programmes and the general elements of those programmes run against the policy approach of the present government overall as taken for the country. As a result, the government’s decision is not to go for an IMF programme. But for various technical and other reasons, the relationship is going on. There are IMF related personnel in Sri Lanka helping the Central Bank in such aspects. “There are discussions between us and IMF officials. That kind of relationship is going on, but the difference is that we are not moving into requesting the involvement for an IMF drawn up policy package like the ones we have gone through at various times from 1979 onwards. That is the difference. That difference probably would have helped us achieve significant developments including self-reliance and independence and overall development,” the governor said.