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Exceptional year for Sri Lanka after May :
Economic performance in line with IMF targets - Dr Koshy Mathai
Sanjeevi Jayasuriya
The Government’s economic performance is in line with the targets set
by the IMF on the Stand-by Agreement. The second tranche will be
released in a day or two and the IMF is confident that the Government
will reach the targets, IMF Resident Representative Dr. Koshy Mathai
said.
 “The
Government has performed well and underline targets of fiscal, monetary
and reserve build up targets have been met. This has been an exceptional
year for Sri Lanka after May where dramatic events took place.
The global environment is improving and the economy is predicted to
grow at 3.2 percent. However, that was not supportive for Sri Lanka, he
said.
The first half of the year was different from the second half where
many development activities took place. The performance will be in line
with the targets and the Government has displayed discipline and serious
commitment to meet these targets and has recognized the need to do so,
he said.
|
IMF Stand-by
Agreement |
| * Government
displays discipline and serious commitment
* Targets within Government’s
reach
* More international reserves
could be accumulated |
“We expect the targets to be within the reach of the Government.
However, the high debt stock is not conducive and more international
reserves could be accumulated. Sri Lanka is enjoying the benefit of a
large amount of foreign reserves”, he said.
The reduction in the domestic borrowing rate would send signals to
the international market that Sri Lanka is back on rack. The IMF is
concerned about the Vote on Account implications. Its plans are not
inconsistent with the targets outlined. We are looking in to all issues
including the pressure on the Government to increase salaries and carry
out an impact assessment and discuss with the Government, he said.
The IMF agreed on a US $ 2.6 billion Stand-by Agreement to Sri Lanka
to pay international creditors and to finance imports and is given to
the Central Bank to boost its reserves.
The Government and IMF have agreed on milestones and achieving
targets.
The quarterly review was conducted to ascertain the level of
performance of the Government in meeting the set targets. |
