International Monetary Fund (IMF) Executive Director Dr. Krishnamurthy Subramanian said the political will displayed by the Sri Lankan leadership to speed up reforms and implement difficult tax increases in order to revive the economy is highly appreciable, according to a press release by the Prime Minister’s media division yesterday (26).

Dr. Subramanian, who called on Prime Minister Dinesh Gunawardena at the Prime Minister’s Office in Colombo yesterday (26) said almost all the requirements for the IMF relief package for Sri Lanka have been completed and the moment the final assurances from major lending countries is completed, the process would be finalised, the release said.

“We will bat for you,” the IMF Executive Director said, using cricket jargon. 

“We play forward with a straight drive for you and whenever necessary, we play cover drives too,” Dr. Subramanian, who was Chief Economic Advisor to the Government of India from 2018 to 2021, had stated.

The Prime Minister had briefed the IMF delegation about the steps taken by the Government to face the unprecedented economic challenges faced by the country and to enhance agricultural produce to meet local demand and also for export.

While elaborating the measures taken to reduce non-essential imports and increase export production, he had stressed the need for welfare for the poorest segments of the society. Dr. Subramanian had said, as the Prime Minister pointed out, a safety net for economically vulnerable groups is an essential requirement when plans are formulated to restructure debts and revive the economy.

However, he had emphasised the public sector should be ready to make sacrifices, as they are at least assured of salaries while many others have lost their avenues of income.

Secretary to the Prime Minister Anura Dissanayake, Central Bank Deputy Governor Dr. Chandranath Amarasekara (who is the IMF Alternate Executive Director), Central Bank Economic Research Department Director Dr. P.K.G. Harischandra, and Central Bank Economic Research Department Deputy Director Dr. V.D. Wickramarachchi also took part in the discussion.

Meanwhile, State Minister of Finance Ranjith Siyambalapitiya has stated that he is “hopeful” that Sri Lanka will receive the first tranche of the Extended Fund Facility (EFF) due from the IMF soon, following a discussion with the IMF delegation led by Subramanian.

While Siyambalapitiya expressed his confidence with regard to obtaining the EFF, the meeting also focused, at length, on the issues faced by the public of Sri Lanka, and the concerns surrounding State revenue.

Technical issues in relation to obtaining loans were also discussed at the meeting, a release issued by the Ministry of Finance said, stating that it was ensured at the end of the said discussion that the island nation is entitled to financial facilities made available by the IMF.