Rebuilding will be done without reversing gains- Govt tells IMF

Colombo, Jan. 28 (Daily Mirror) - The International Monetary Fund (IMF) which concluded its latest mission to Sri Lanka said that the authorities are committed to safeguarding the gains that were achieved on fiscal and debt sustainability in rebuilding after the disaster caused by the cyclone.

At the end of the mission, IMF mission chief Evan Papageorgiou said that the authorities are also committed to strengthen public investment management including

project reprioritization and implementation, and ensure spending is executed transparently and in compliance with the Public Financial Management Act. 

The IMF) team led by Mr.  Papageorgiou visited Colombo from January 22 to 28 to hold discussions on the impact of Cyclone Ditwah. 

During the mission, the team engaged with authorities and relevant stakeholders to understand the economic and social impact of the cyclone, including the damage to infrastructure and loss of livelihoods. Discussions focused on the fiscal response to the natural disaster, as well as on the implications for monetary policy and financial sector stability. 

Our meetings included in-depth exchanges on the authorities’ policy intentions going forward, their financing needs, and how the IMF can best support Sri Lanka’s recovery and reconstruction efforts under the Extended Fund Facility (EFF) arrangement.

"As Sri Lanka starts rebuilding, the authorities are committed to safeguard the gains that were achieved on fiscal and debt sustainability, strengthen public investment management including project reprioritization and implementation, and ensure spending is executed transparently and in compliance with the Public Financial Management Act. They are determined to continue strengthening social safety nets to protect the poor and vulnerable, who are disproportionately affected by the cyclone, " he said. 

“We plan to field an IMF mission at the earliest possible juncture to resume discussions on economic policies for the next review under the EFF. We reaffirm our solidarity with Sri Lanka and readiness to support the country in its efforts to safeguard macroeconomic stability and promote resilience and sustainable growth ," he said.