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Jul 2, 2022

Lanka facing hardship economy: IMF

Foreign Affairs News Correspondent
Lanka Map

“Sri Lanka is going through a severe economic crisis with expected to contract significantly in 2022, while inflation is high and rising.”

The International Monetary Fund (IMF) team during their visit to Lanka witnessed some of the hardships currently faced by the Sri Lankan people, especially the poor and vulnerable who are affected disproportionately by the crisis.

After their visit, the IMF reports that “the critically low level of foreign reserves has hampered the import of essential goods. So, IMF said “we reaffirm our commitment to support Sri Lanka at this difficult time in line with the IMF’s policies.”

“The authorities’ monetary, fiscal policy and other actions since early April were important first steps to address the crisis. The team had constructive and productive discussions with the Sri Lankan authorities on economic policies and reforms to be supported by an IMF Extended Fund Facility (EFF) arrangement.

The team and the authorities made significant progress on defining a macroeconomic and structural policy package.

“The IMF team also had meetings with various high level personalities of Lanka including President Gotabaya Rajapaksa, Prime Minister and Finance Minister Ranil Wickremesinghe, as well as private sector, civil society organizations, and development partners representatives, said ethe reports of the IMF.