COLOMBO:  , Sri Lanka’s painful austerity measures were “bearing fruit” and must be sustained, the International Monetary Fund said on Friday ( Oct 4 ) as the country’s new president sought changes to its US$ 2.9 billion bailout.
In the run-up to the election, leftist leader Anura Kumara Dissanayake pledged to reverse exorbitant tax increases, boost public servant pay, and revise an unhappy IMF bailout secured by Colombo next year.
However, according to experts, Dissanayake’s IMF agreement phrases are not likely to change.
The avowed Marxist met with IMF officials on Friday for a next day directly, his organization said in a statement.
In cooperation with the IMF, President Dissanayake says he wants to pursue the goals of the programme while looking for alternative ways to lessen the strain on the citizens.
In his first meet with the IMF committee on Thursday, Dissanayake said he wanted to reduce the tax burden on lower-income homes.
In response, the Washington-based merchant stressed that it was crucial not to jeopardise Sri Lanka’s hard-won economic recovery.
” Reform initiatives are bearing fruits in terms of reviving economic development, lowering prices, boosting resources and improving revenue mobilisation”, director Julie Kozack said in Washington.
” Remaining significant flaws and uncertainties are significant, and it’s crucial to maintain reform speed.”
IMF Asia Pacific Director Krishna Srinivasan called the speaks “productive” and focused on maintaining “hard-won profits”.
Sri Lanka may just receive a third round of US$ 336 million if the borrower is satisfied that the leaders are adhering to the rescue plan’s spending and revenue goals.