An International Monetary Fund (IMF) delegation is expected to visit Sri Lanka within the first two weeks after the new president assumes office, The Sunday Times reported.
The delegation aims to reach a staff-level agreement concerning the future activities tied to the IMF’s extended financial facility for Sri Lanka. Citing a senior official from the Ministry of Finance, the report mentioned that the IMF team will meet with the newly elected president, who is set to take office on September 21.
The delegation will engage in preliminary discussions on necessary adjustments to the current financial assistance program, leading to a staff-level agreement.
The IMF has expressed concerns that political instability following the presidential election could severely impact the economy. Their primary focus will be ensuring economic stability during the interim period between the presidential and upcoming general elections.
Furthermore, the report highlights that senior officials from the Ministry of Finance have analyzed the policy platforms of the leading presidential candidates, evaluating how these align with the IMF’s agreements and their potential economic impact.
According to the report, if the budget deficit changes by 3 to 4 percent, as proposed by some candidates, it could reduce the country’s deficit by 11 percent of its GDP, which may breach the IMF’s agreement conditions.
