The Director of the International Monetary Fund’s (IMF) Communications Department, Julie Kozack has highlighted several commendable objectives reached by the Sri Lankan Government.
Julie Kozack described the overall implementation of the IMF program as strong.
The IMF staff and the Sri Lankan authorities have reached a staff-level agreement on economic policies to conclude the second review of the 4-year EFF-supported program and the 2024 Article IV Consultation.
Once the review is approved by IMF Management and completed by the IMF Executive Board, Sri Lanka will have access to about US$337 million in financing.
Commenting on Sri Lanka’s economic performance, Kozack said macroeconomic policies in Sri Lanka are starting to bear fruit.
“Commendable outcomes include a rapid decline in inflation, robust reserve accumulation, and initial signs of economic growth, while also preserving stability in the financial system. Overall, program performance has been strong,” she said.
On debt restructuring, Kozack revealed that the next steps are to conclude negotiations with external private creditors and to implement the agreements in principle with Sri Lanka’s official creditors.
“The domestic debt operations are largely completed. The initial debt restructuring negotiations with external bondholders ended in mid-April without an agreement and discussions are continuing with a view to reaching agreement in principle. And on the official creditors’ side, these agreements in principle still need to be finalized,” she added.
The Director of the IMF’s Communications Department, Julie Kozack made the remarks while addressing a press briefing in Washington, DC on Thursday. (Newswire)