IMF wants fiscal policy in Sri Lanka that protects most vulnerable

The International Monetary Fund (IMF) has told Sri Lanka to formulate a fiscal policy in a way that protects the livelihood of the most vulnerable.

Anne-Marie Gulde-Wolf, IMF Acting Director of the Asia and Pacific Department said that Sri Lanka is a country that is on everybody’s radar screen.

“There’s a lot of attention given the deep economic problems the country faces right now, and I want to start by saying that we at the IMF are clearly very concerned about Sri Lanka and trying to work on finding a faster as possible solution for the country,” Anne-Marie Gulde-Wolf said.

Anne-Marie Gulde-Wolf said that the most important issue is to find a credible and coherent macroeconomic strategy that addresses the key risks in the country.

“And this would include on the fiscal side, revenue-based consolidation strategy that increases ability of the country to raise revenues and to address suspended most critical spending needs. Monetary policy has to be tightened to keep the inflation in check and we see a need for a flexible exchange rate. And I want to emphasize that in this adjustment measures, we have to be mindful of the most vulnerable, and fiscal policy has to be formulated in a way that protects the livelihood of the most vulnerable,” Anne-Marie Gulde-Wolf said.

On revenue-based consolidation, she said that wherever possible the taxes should be paid more by those that are well off compared to the most vulnerable segments of society.

“Now, we have received a program request from Sri Lanka, and we have had very good, fruitful, technical discussions on preparations for further negotiations with the authorities over the past weekend and a couple of days before. The number of concerns arise and, you know, we had a Country Report that was done in February -– a regular Country Report and did contain the debts of sustainability assessment,” she said.

Anne-Marie Gulde-Wolf said that debt in Sri Lanka is assessed as being unsustainable so the IMF welcomes the authorities’ intent to engage with their creditors. (Colombo Gazette)

3 COMMENTS

  1. Sri Lanka’s foreign debt is a by product of your political system, lifestyle and useless mindset.

    In China people do not waste time or create unrest by talking religion, language or caste. But in South Asia, leaders use language and religion to keep their power. This is a big loophole in South Asia and it will continue to impact the economy negatively. Riots and wars destroy investments, skills and lives, perfect examples are 1983 riots and decades long civil war. Extended religious activities encourages people’s laziness, example poya day every month. Sri Lanka has too many public holidays. This will impact the economy negatively.

    Worst of all, Sri Lankan leaders listen to Buddhist monks above others. Those Buddhist monks don’t even earn a rupee but beingl dependent on others. However, Sinhalease leaders put those Buddhist monks on their head and dance. Overall, Sri Lanka’s political structure is wrong. As long as voting system exists, religion and language will continue to undermine the country. I firmly believe that the western powers would not have introduced the democratic system, if there was a tiny chance for South Asia to come up above the western countries by using the democratic system.

    People can send the politicians home, but the million dollar question is who will send the lazy people home who only work a few hours a day as government employees? Who will send the dishonest teachers home who teach as little as possible at schools to make more money from tuition classes? Who will send the corrupt police customs officials home who get bribes? The people fool themselves by overlooking their own lies, laziness and dishonesty; meantime they are hoping to become a developed country by changing the leaders. The political leaders didn’t fall from the sky, they came from the community. Therefore, Sri Lanka needs tough leader who can change the people’s mindset; otherwise Sri Lanka cannot come out of the current predicament.

  2. Please conduct a full audit of loans to see how much these criminals have stolen by over quoting cost for example on all highway projects. No mercy for these criminals at all…

    • Who will investigate the Criminals investigating the Criminals?

      Sajith Premadasa’s father was one of the most corrupt men in Sri Lanka; albeit not in the same class as Chandrika Kumaratunga. These are the same people now pointing the finger at others.

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