By The Pulseline News Desk
Sri Lanka may enter into another agreement with the International Monetary Fund (IMF) as the Government considers its economic priorities beyond the current bailout programme, Deputy Minister of Finance Anil Jayantha Fernando has indicated.
Fernando has acknowledged during a television discussion that there was a possibility of Sri Lanka entering into a new agreement with the IMF, while stressing that the Government was yet to assess the country’s requirements before making a decision.
The Deputy Minister said a committee appointed by the Cabinet at its most recent meeting had been tasked with examining the need for a further IMF programme. However, the committee had not yet held its first meeting.
He explained that the committee would assess Sri Lanka’s economic position as the country prepares to move beyond the current 17th IMF programme, which he described as having been successfully completed.
Fernando said the Government’s priorities had evolved since the country entered the IMF-supported programme, with the initial focus being on restoring macroeconomic stability.
“The responsibility we have now is different from what we had previously. Earlier, the focus was on achieving economic stability. Now, we are preparing to take the next step,” he said.
He added that Sri Lanka would continue to maintain engagement with the IMF and other international financial institutions, irrespective of whether it entered into another formal programme.
However, he emphasised that the Government needed to carefully evaluate the country’s specific economic requirements before determining the most appropriate arrangement.
The committee is expected to submit its findings and recommendations to the Cabinet, which will make the final decision on whether Sri Lanka should pursue another IMF agreement.
His remarks come as Sri Lanka approaches the next phase of its economic recovery, following the implementation of successive IMF-backed reform measures aimed at restoring financial stability, strengthening public finances and rebuilding foreign reserves.
While the current programme has provided a framework for economic reforms and international financial support, the Government’s next decision will be significant in determining the country’s future engagement with the IMF and its approach to sustaining economic stability.
Fernando’s acknowledgment that another agreement remains a possibility signals that the Government has not ruled out continued IMF support as it considers the challenges and priorities of the next phase of economic recovery.
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