President, IMF team agree to continue EFF programme without any changes

The International Monetary Fund (IMF) team, which arrived last week for a fact-finding mission, has confirmed that there will be no changes to the Extended Fund Facility programme agreement with Sri Lanka. This announcement came during a meeting with President Anura Kumara Dissanayake at the Presidential Secretariat on the 28th. The IMF representatives, who came to assess the damage from Cyclone Ditwah, arrived in Sri Lanka on January 22. They traveled across the country to see the impact of the cyclone and spoke with affected communities. The IMF team expressed their sorrow over the disaster, noting it struck while Sri Lanka's economy was slowly recovering and causing significant hardship for the people. They praised the government for its quick response in helping those impacted, improving infrastructure, and working to restore normal life amid these challenges, according to the President’s Media Division (PMD). The IMF representatives highlighted the strong fiscal discipline shown by the Sri Lankan government over the past year as essential in dealing with the situation. They also pointed out that a supplementary estimate of Rs. 500 billion was possible due to a surplus in the Treasury, which they considered a notable achievement. Despite the severe disaster, the IMF team affirmed that Sri Lanka is on the right track economically and confirmed no changes would be made to the Extended Fund Facility programme agreement. They also mentioned that discussions about the sixth tranche under the programme would start again in March, as stated by the PMD. President Anura Kumara Dissanayake remarked that the disaster hit poor rural communities the hardest, causing significant damage to rural infrastructure and livelihoods. He announced that Rs. 500 billion would be set aside to help protect rural livelihoods and restore income-generating activities. The President stressed that this decision does not mean a break from good financial management or fiscal responsibility. He emphasized that the goal is to ensure that improvements in macroeconomic indicators benefit ordinary citizens, focusing on rebuilding lives affected by past events like the Easter Sunday attacks and the recent economic crisis. He also mentioned that all future government programs will align with this goal, and Sri Lanka looks forward to continued support from the International Monetary Fund.