The International Monetary Fund (IMF) has informed the Sri Lankan government that it could raise the tax revenue target by more than Rs 900 billion if the revenue collection measures were enforced properly.
Meanwhile, Kenji Okamura, Deputy Managing Director of the IMF, emphasized that sustaining the country’s reform agenda is key to securing long-term economic stability and achieving debt sustainability. “Risks to the economy remain,” Okamura said, stressing the need for Sri Lanka to maintain a steady course with its reforms.
He further warned that there is little room for policy mistakes, highlighting the delicate balance the government must maintain as it works toward meeting these conditions.
The release of the fourth tranche was approved on February 28 after the Executive Board of the IMF completed the third review under the 48-month Extended Fund Facility (EFF) Arrangement to Sri Lanka.
The global lender said it would release about USD 334 million to the crisis-hit nation, bringing total funding to around USD 1.3 billion.
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