Ceylon Chamber wants Sri Lankans to take ownership of reform agenda

• Congratulates govt. for securing staff deal with IMF and reaching preliminary debt deal with Exim Bank of China

Sri Lanka’s premier business chamber, Ceylon Chamber of Commerce wants Sri Lankan citizens to take ownership of the reform agenda currently underway with the support of the International Monetary Fund (IMF).
“We urge Sri Lankan citizens to take ownership of the reform agenda, as collective action is vital to navigate the country’s financial challenges and set Sri Lanka back on a path to growth,” Ceylon Chamber said in a statement.
Sri Lanka initiated an unprecedented reform effort under an IMF-backed programme in 2022, following the declaration of bankruptcy due to years of gross mismanagement of the economy by successive governments.

To restore the country’s public finances, the restructuring or privatisation of certain state-owned enterprises remains a crucial step.
The authorities have already initiated the privatisation process for some key enterprises, and the introduction of price-reflective tariffs has lessened the financial burden on state-run electricity and petroleum utilities, relieving the strain on state coffers.
Nevertheless, it is imperative to expedite the restructuring of these utilities to ensure their efficient operation. 
Elevated electricity and fuel prices have exerted pressure on the country’s businesses, particularly small and medium-sized enterprises (SMEs), thus impacting overall 
economic growth.

Meanwhile, Ceylon Chamber congratulated the government for reaching a staff-level agreement on the first review of Sri Lanka’s Extended Fund Facility Arrangement (EFF) of IMF and the preliminary deal with the Exim Bank of China for debt treatment. 
The staff agreement with the IMF is set to grant Sri Lanka access to the second tranche, approximately US$ 330 million in financing, pending approval by the IMF’s Management and Executive Board.
“While we acknowledge these accomplishments, we urge the government to maintain the momentum of the current reform agenda to steer the economy toward lasting recovery and stable, inclusive growth. 

Furthermore, it is imperative to address persistent issues related to governance weaknesses and corruption vulnerabilities. 

The IMF’s Governance Diagnostic Assessment resonates with Ceylon Chamber’s own call for reforms in these critical areas,” the Ceylon Chamber said.
“In conclusion, we commend the government for these significant strides but stress the need for ongoing reforms, robust governance, and shared responsibility. Adherence to these principles will undoubtedly put Sri Lanka back on a trajectory of economic growth and stability,” it added.