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US Senate says IMF agreement must depend on key reforms

04 Jul 2022 - {{hitsCtrl.values.hits}}      

  • Approval would require adequate financing assurances from Sri Lanka’s creditors that debt sustainability will be restored
  • IMF agreement with Sri Lanka must be contingent on the independence of the Central Bank of Sri Lanka, strong anti-corruption measures, and promotion of the rule of law

The United States Senate Foreign Relations Committee said yesterday that any IMF agreement with Sri Lanka must be contingent on the independence of the Central Bank of Sri Lanka, strong anti-corruption measures, and promotion of the rule of law.   

“Without these critical reforms, Sri Lanka could suffer further economic mismanagement and uncontrollable debt,” the tweet said.   


Earlier, the IMF team which concluded its visit to Sri Lanka said they had constructive and productive discussions with the Sri Lankan authorities on economic policies and reforms to be supported by an IMF Extended Fund Facility (EFF) arrangement and also said Executive Board approval would require adequate financing assurances from Sri Lanka’s creditors that debt sustainability will be restored and far-reaching tax reforms are urgently needed.