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Following discussions with minister of state for finance Shehan Semasinghe, central bank governor Nandalal Weerasinghe, and treasury secretary Mahinda Siriwardena during the IMF/World Bank Spring Meetings in Washington, Gopinath underscored the significance of sustaining economic reforms.
Acknowledging Sri Lanka’s hard-won economic gains in the past year, Gopinath expressed her concerns about the formidable challenges ahead even as she highlighted the importance of continuous reform efforts to navigate through these challenges effectively.
Emphasising the criticality of reform momentum, Gopinath’s remarks underscored the ongoing commitment required from Sri Lanka to drive economic progress.
Under President Ranil Wickremesinghe’s leadership, Sri Lanka has undertaken significant reforms, including measures such as tax increases, as part of its IMF programme.
The decision to engage with the IMF came after Sri Lanka faced a sovereign debt default in April 2022, necessitating urgent economic stabilisation measures.
State minister for finance, Semasinghe expressed gratitude to Gopinath for recognising Sri Lanka’s economic progress and described the discussions as insightful and productive. He reiterated Sri Lanka's steadfast commitment to its reform agenda and expressed eagerness for continued collaboration with the IMF to achieve shared objectives.
Sri Lanka’s engagement with the IMF stems from a period of economic and political turmoil, including an unprecedented economic crisis followed by political upheaval.
The IMF programme encompasses reforms in various sectors, including state-owned enterprises, the fiscal sector, and financial sectors, aimed at ensuring long-term debt sustainability.
Furthermore, the IMF has pledged support to expedite Sri Lanka’s debt restructuring process with private creditors, including sovereign bond holders, indicating the global lender’s commitment to facilitating the island nation’s economic recovery and stability.
Fibre2Fashion News Desk (DR)