The former Government had reached an agreement with the IMF, resulting in the disbursement of IMF funds for Sri Lanka under the Extended Fund Facility (EFF). Among the economic measures implemented by the former Government in line with IMF expectations was a fuel pricing formula.
However, the new Government has scrapped the formula and introduced a new economic policy. IMF Mission Chief for Sri Lanka Manuela Goretti told The Sunday Morning the IMF had not yet had talks with the new Government on its economic policies.
“We have not had a chance to review the measures or discuss them with the authorities yet. In general, any measures to stimulate investment and growth should be part of a comprehensive policy strategy that also advances fiscal consolidation and safeguards public debt sustainability, given Sri Lanka’s still high public debt and refinancing needs over the medium term,” Goretti said.
The new Government has already said it wants to renegotiate the agreement with the IMF.