Middle East war poses significant challenges to Sri Lanka – IMF

Colombo, April 10 (Daily Mirror) - The International Monetary Fund (IMF) said that despite the gains, Sri Lanka continues to face significant challenges due to the ongoing conflict in the Middle East.

Making his remarks to the press at the conclusion of the latest mission, IMF Mission Chief for Sri Lanka Evan Papageorgiou said the country was still recovering from the devastating impact of Cyclone Ditwah at the same time which had urgent infrastructural and transport spending needs.

“We have several intervention pressures, underscoring options for accelerating reforms to safeguard (0:52) macroeconomic stability and build resilience against future shocks. Looking ahead, continuing efforts are essential,” he said.

Commenting on the Middle East issue, he said, “We are paying very close attention. We think that it is a significant shock, and depending on how these events play out, the duration and the size of the shock has significant implications for Sri Lanka's growth, for exports, for remittances, and for connectivity and other areas. We are paying very close attention when we consider this,” he said.

He said that as the government undertakes reconstruction, it is vital that projects are prioritized carefully and executed transparently, in line with the Public Financial Management Act.

“Social safety nets must be preserved and strengthened to ensure that support reaches those who need it the most. Monetary policy should remain data-driven and responsive to the evolving priorities and conditions of the country,” he said.