Govt decision in the right direction - IMF

Sanjeevi JAYASURIYA

Dr Brian Aitken

The government's decision to devalue the rupee by three percent is a policy decision in the right direction, International Monetary Fund (IMF) staff mission Head Dr Brian Aitken said.

The IMF team had productive rounds of discussionwith the government on economic development and policies. The team met Central Bank officials as well as representatives of civil society and the private sector during a visit to Colombo from January 25 to yesterday.

"We feel that Sri Lanka's economic growth is very strong and inflation is under control. However, the widening trade deficit and the rapid growth in credit are two areas of key concern," Dr Aitken said.

The team will return to Washington and continue to assess policy actions and economic development. "We look forward to moving towards the completion of the next review of the Standby Agreement," he said.