Seventeenth time with IMF is different, assures CB Governor

• Says SL can now see “light at the end of the tunnel”
• Points out measures taken thus far are showing results
• Asserts all stakeholders of the economy need to work towards ensuring 17th IMF programme isn’t like previous efforts

By Shabiya Ali Ahlam

Sections of the economy, including the business community and the general public, still have their doubts in International Monetary Fund (IMF)’s latest bailout bringing in relief, but the Central Bank gave firm assurance that this time round it is “different”.
Central Bank Governor Dr. Nandalal Weerasinghe expressed confidence in Sri Lanka’s ability to finally see the “light at the end of the tunnel” after having faced the worst economic and social crisis in its history just last year that left the entire nation in a quagmire.

Despite the overwhelming challenges, Sri Lanka has shown its resilience and proved that its innate potential remains untapped as the economy had been weighed down by several legacy issues that remained unaddressed due to these warranting unpopular measures, he pointed out.
“However, these measures have been steadfastly implemented and we are beginning to see the results. 
“This is why I firmly believe that this time, the 17th time with the IMF, is different – the onus lies on us, as policy makers, corporates, SMEs, households and as citizens to ensure that this time will be different,” said Dr. Weerasinghe.

The CB Governor shared his views while addressing the CFA Society Sri Lanka – CEO Forum on ‘Rebooting Sri Lankan Economy – Post Domestic Debt Optimisation’ on Friday (21).
He called on industry professionals, such as CFA Charter holders, to consistently and positively engage with the Central Bank and the government in the ongoing initiatives while also serving as a bridge with other external stakeholders, especially foreign investors to remain positive and provide objective analytical assessments of developments in the economy and its expected trajectory. 

“We believe such two-pronged engagement by professionals, such as yourselves, is also a prerequisite to the rebooting of the economy and its progress onto a high growth path,” added Dr. Weerasinghe.

As part of the IMF-EFF programme several other reforms have been completed while many others are underway to help the economy transition into a high growth trajectory.
The governor stressed that the aim of the ongoing efforts is not only for the short run, but also to be able to sustain such progress in the long run. 
This includes the implementation of the pricing formulas for key utilities in an attempt to improve the financial status of some of the key SOEs and the initiatives to restructure and partially or fully privatise SOEs. 

Dr. Weerasinghe noted that implementing these strategies could help significantly improve competition and efficiency in the provisioning of these goods and services, especially utilities.
“Reducing the burden of SOEs through these initiatives will help them transform into ‘growth enablers’ that can not only contribute to the well-being of individuals and businesses. it will also help induce improvements in ‘doing business’ and the business environment,” he stressed.