Central Bank of Sri Lanka says in a response to the International Monetary Fund (IMF)’s Article IV Staff Report on Sri Lanka several policy adjustments have already been made by the Ministry of Finance and the Central Bank. Elaborating the measure taken CBSL says monetary policy tightening since August 2021, allowing exchange rate flexibility, removing restrictions on foreign exchange market transactions, implementing envisaged revenue enhancing measures, and allowing market-based price adjustments to key commodities.
With the Government indicating that it is seeking a closer engagement with the IMF, the CBSL stands ready to cooperate in such an engagement.
Read the full text of CBSL’s response
The International Monetary Fund (IMF) has published its Article IV Staff Report on Sri Lanka. The Article IV process included;
a) a visit to Sri Lanka by an IMF staff team in December 2021 during which consultations were held with the Ministry of Finance (MoF) and the Central Bank of Sri Lanka (CBSL), as well as several other government agencies, financial institutions and private organisations and individuals,
b) further clarifications sought by the staff team upon their return to the IMF Headquarters,
c) discussion at the Executive Board of the IMF on the Article IV Report, by which time the Sri Lankan authorities had consented in principle to the publication of the Report
d) a press release being issued by the IMF upon conclusion of the Executive Board discussion,
e) an IMF team visiting the country to apprise His Excellency the President on the findings of the Article IV consultation,
f) the final clearance being provided by the Sri Lankan authorities, and
g) the publication of the final Report on 25 March 2022.
Meanwhile, the CBSL has continued to publish its analysis, in addition to providing further in-depth analysis on policy matters to the Government and engaging in a continued close dialogue with the Government on the same.
At the same time, several policy adjustments have already been made by the MoF and the CBSL. These include monetary policy tightening since August 2021, allowing exchange rate flexibility, removing restrictions on foreign exchange market transactions, implementing envisaged revenue enhancing measures, and allowing market-based price adjustments to key commodities.
With the Government indicating that it is seeking a closer engagement with the IMF, the CBSL stands ready to cooperate in such an engagement.
