• Claims their Govt. will amend certain clauses in IMF agreement 

Blaming the current Government for the uncertain situation that has risen with regard to the second tranche from the International Monetary Fund (IMF), Opposition Parliamentarian Prof. G.L. Peiris has assured a review of certain clauses in the agreement between the government and the IMF and appropriate amendments under a future government.

It was reported that Sri Lanka’s second tranche of the $ 3 billion Extended Fund Facility (EFF) from the IMF is likely to be delayed, as the country has failed to meet the programme’s objectives.

Commenting on the possible delay in the receipt of the said tranche, Prof. Peiris said that the Government should be held fully responsible and that no other party could be blamed for it. “The Government should take full responsibility for what has happened. It cannot be delegated to any other party. In the end, the people have to suffer the consequences of the corrupt actions of the Government. They did not take any action to eliminate corruption, and frame billionaires and large-scale companies that evade paying taxes. The IMF is well aware of these issues.”

He said that the unfortunate situation prevailing at present would not last for a long time, as a government change would take place in the near future. “In 10 more months, this situation will completely change. The upcoming government will definitely subject certain matters in the agreement between the government and the IMF to a review. We will not abolish this agreement, and it is not possible to do so either, but we will be reviewing the agreement in consultation with all the relevant stakeholders such as the trade unions and civil and political organisations.”

The IMF in March 2023, approved a 48-month, $ 3 billion arrangement under the EFF to support Sri Lanka’s economic policies and reforms with the main emphasis on increasing government revenue, boosting foreign currency reserves, and reducing inflation, which saw a significant increase during the economic crisis. An IMF delegation was in Colombo for over a week for the first review of the EFF before the IMF’s Executive Board approval for the second tranche, and the delegation has said that there was no fixed timeline for the second tranche to be discharged.