The International Monetary Fund (IMF) confirmed that it would continue to assess Sri Lanka’s program after the presidential election, scheduled for September 21, 2024.
IMF’s Head of Communications Julie Kozack speaking to reporters on Sri Lanka’s upcoming third review of the IMF’s Extended Fund Facility (EFF) program said the timing of the review will be discussed with the government following the elections.
The IMF’s third review is expected to take place in mid-October, once the elections are concluded.
“From the IMF’s position, what we see is a program that has made significant achievements, but it is important to safeguard these achievements to enable the country to fully emerge from one of its worst crises,” Kozack said.
“The timing of the Third Review will be discussed with the government following the elections. So we will move forward with program discussions after the presidential elections take place and a new government, or the outcome based on the choice of the people, we will be ready to — to go with that,” she added.
Responding to concerns raised by Sri Lanka’s opposition groups about potentially renegotiating the Debt Sustainability Assessment (DSA) after the election, Kozack maintained that the IMF’s stance remained unchanged.
The DSA is a key component in the country’s ongoing debt restructuring process, she said, stressing that the IMF’s role in such matters is limited to making an overall assessment of debt sustainability.
The IMF does not engage in direct negotiations between member countries and their creditors. “Those negotiations are between the member country and its creditors, with the IMF making an overall assessment of debt sustainability,” she said.
Kozack highlighted that the IMF provides its assessments to both Sri Lankan authorities and financial advisors representing the country’s bondholders.
Earlier in August, an IMF team visited Colombo to assess Sri Lanka’s domestic debt restructuring efforts, alongside the finalization of agreements with official creditors, including the China EXIM Bank.
Kozack noted that these are crucial milestones in Sri Lanka’s journey toward stabilizing its economy. (Newswire)