Focus

Sri Lanka's economy shows tentative signs of improvement: IMF

02 Jun 2023 10:40pm
A vendor selling onion waits for customers at a market in Colombo on March 20, 2023. Cash-strapped Sri Lanka is seeking a 10-year moratorium on its foreign debt, President Ranil Wickremesinghe's office said on March 20 on the eve of a desperately needed $2.9 billion IMF bailout. (Photo by Ishara S. KODIKARA / AFP)
A vendor selling onion waits for customers at a market in Colombo on March 20, 2023. Cash-strapped Sri Lanka is seeking a 10-year moratorium on its foreign debt, President Ranil Wickremesinghe's office said on March 20 on the eve of a desperately needed $2.9 billion IMF bailout. (Photo by Ishara S. KODIKARA / AFP)

COLOMBO, Sri Lanka - Sri Lanka's economy is showing tentative signs of improvement, partly due to the implementation of critical policy actions, according to a statement from the International Monetary Fund (IMF) sent to local media on Friday.

The economic recovery remains challenging, and it is essential to continue the reform momentum under strong ownership by both the authorities and the Sri Lankan people, said IMF Deputy Managing Director Kenji Okamura in the statement following his visit to Sri Lanka.

Okamura said he welcomes Sri Lanka's strong commitment to implement their ambitious economic program that aims to achieve macroeconomic stabilization, restore debt sustainability, safeguard financial stability, strengthen governance, and protect the vulnerable.

The current economic crisis has its genesis in policy missteps aggravated by external shocks, he said.

During his visit, he discussed with officials the importance of fiscal measures, in particular revenue measures, for a return to macroeconomic stability.

"I was encouraged by the authorities' commitment to negotiate a debt strategy in a timely and transparent manner. Continued open dialogue with the creditors will help to reach restructuring agreements to restore debt sustainability in line with the program targets," he said.

As Sri Lanka navigates its way through the economic crisis, it remains imperative to protect the poor and the most vulnerable that have been disproportionately affected by the crisis, Okamura said.

The IMF in March this year approved a 48-month extended arrangement under the Extended Fund Facility of about 3 billion U.S. dollars to support Sri Lanka's economic policies and reforms. - XINHUA

Related Articles:

sri lanka
economy
improvements
imf
More Like This
Spain's Prime Minister Pedro Sanchez (R) applauds with Palestinian prime minister Mohammad Mustafa (2R) as Spain's second Deputy Prime Minister and Minister of Labor and Social Economy Yolanda Diaz (2L) stands with Palestinian labor minister Enas Attari after signing bilateral accords during a signing ceremony at the Moncloa Palace in Madrid, on November 21, 2024. (Photo by OSCAR DEL POZO / AFP)
Spain's Prime Minister Pedro Sanchez (R) applauds with Palestinian prime minister Mohammad Mustafa (2R) as Spain's second Deputy Prime Minister and Minister of Labor and Social Economy Yolanda Diaz (2L) stands with Palestinian labor minister Enas Attari after signing bilateral accords during a signing ceremony at the Moncloa Palace in Madrid, on November 21, 2024. (Photo by OSCAR DEL POZO / AFP)
World Spain holds first talks with Palestinian govt since recognising state
The aim is to "help promote Palestine's statehood at the international level" and encourage other nations to follow the example of Spain, Ireland, Norway and Slovenia.
This handout photograph taken by Press Wing of Bangladesh's Chief Adviser and released on November 21, 2024, shows nobel laureate and chief adviser of Bangladesh's interim government Muhammad Yunus (R) with former premier and Bangladesh Nationalist Party (BNP) chairperson Khaleda Zia (2L) at a reception to mark the country's Armed Forces Day in Dhaka. - Photo by AFP
This handout photograph taken by Press Wing of Bangladesh's Chief Adviser and released on November 21, 2024, shows nobel laureate and chief adviser of Bangladesh's interim government Muhammad Yunus (R) with former premier and Bangladesh Nationalist Party (BNP) chairperson Khaleda Zia (2L) at a reception to mark the country's Armed Forces Day in Dhaka. - Photo by AFP
World Bangladesh ex-PM makes first public appearance in six years
The ferocious rivalry between the two former premiers -- born in blood and cemented in prison -- has defined politics in the Muslim-majority nation for decades.
This image shows an artist’s impression of the star WOH G64, the first star outside our galaxy to be imaged in close-up. - Photo by AFP
This image shows an artist’s impression of the star WOH G64, the first star outside our galaxy to be imaged in close-up. - Photo by AFP
World The first 'zoomed-in' image of a star outside our galaxy
Roughly 160,000 light years from Earth, the star WOH G64 sits in the Large Magellanic Cloud, a satellite galaxy of our home Milky Way.
People play World of Warcraft at an E-Sports centre in Jinzhou, in China’s central Hubei province on August 1, 2024. - AFP
People play World of Warcraft at an E-Sports centre in Jinzhou, in China’s central Hubei province on August 1, 2024. - AFP
World 'World of Warcraft' still going strong as it celebrates 20 years
"WoW" was born the same year as Facebook, and comprised key elements such as online interactions and communities that would help create today's globalised social networks.