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“Beautiful country with huge potential”: IMF’s Dr. Srinivasan on Sri Lanka
IMF Asia and Pacific Department Director Dr. Krishna Srinivasan sharing his sentiments with President Anura Kumara Dissanayake at the Presidential Secretariat during his fourth visit to Sri Lanka
- Says he was able to see first-hand the impact of natural disasters, including flooding and damaged roads that need urgent repair
- Shares he witnessed huge appreciation from people for what the government has done, notably in governance reforms
- Says delegation decided to proceed with the planned mission despite the impact of cyclone Ditwah, to express the Fund’s solidarity with the people of Sri Lanka
- Confirms IMF Managing Director Kristalina Georgieva will visit Colombo next month to assess the success of the programme
- IMF Mission Chief Papageorgiou shares the review will incorporate the latest disaster impact assessments, including data from the Disaster Management Centre, and government support measures
By Shabiya Ali Ahlam
Sri Lanka’s economic recovery plans face new uncertainties after Cyclone Ditwah, but the International Monetary Fund (IMF) signalled continued support this week as it assessed the storm’s impact on the island nation.
“This is a very beautiful country and has huge potential in terms of what we can achieve,” IMF Asia and Pacific Department Director Dr. Krishna Srinivasan, told President Anura Kumara Dissanayake during his fourth visit to Sri Lanka.
Sharing this in his first time travelling outside Colombo, Dr. Srinivasan said, “There are three things I’d like to highlight. First, the beauty and potential of this country. Second, I saw first-hand the impact of natural disasters, including flooding and damaged roads that need urgent repair.
“Our sympathies are with the people of Sri Lanka for the lives lost and the impact of the disaster. Third, I witnessed huge appreciation from people for what the government has done, notably in governance reforms,” he told President Dissanayake at a meeting held on Wednesday.
The meeting included members of the visiting IMF delegation, officials of the Central Bank, and Ministry of Finance among others.
He added that the mission had been scheduled months in advance, and although the cyclone was an unexpected shock, the delegation decided to proceed to express the Fund’s solidarity with the people of Sri Lanka.
Dr. Srinivasan confirmed that the IMF Managing Director Kristalina Georgieva will visit Colombo next month to assess the success of the programme and reaffirm the institution’s support.
Meanwhile, IMF Mission Chief for Sri Lanka Evan Papageorgiou, speaking at a media round-table on Wednesday, elaborated on the delegation’s work, noting that they are examining the cyclone’s impact on economic activity, fiscal and monetary policy, and the Extended Fund Facility (EFF) arrangement.
“Last week, we discussed a broad set of issues: understanding how the cyclone affected economic activity, other elements of the economy, and the authorities’ intentions on policy,” he said.
“The programme itself was performing strongly until the cyclone in late November. The disaster created additional uncertainties, which will be reflected in some quantitative performance criteria and in updated macroeconomic projections.”
Papageorgiou said the IMF review will incorporate the latest disaster impact assessments, including data from the Disaster Management Centre, and government support measures.
He noted that the Fund has not made determinations on all the effects, but stressed that every review provides the opportunity to look in depth and adjust programme parameters as needed.
“Understanding the cyclone’s impact is critical, given the breadth of its effect across the economy,” he noted, stressing that such shocks are accounted for in IMF programmes worldwide.
The IMF delegation is expected to return to Colombo in the coming weeks to continue the review.
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