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IMF applauds the country’s significant progress in implementing economic reforms

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During a meeting between President Ranil Wickremesinghe, Sri Lankan authorities and the International Monetary Fund (IMF) on Thursday (11), the IMF congratulated the country on completing the first review under its program. The IMF highlighted the positive start of the program, recognizing the challenging reforms undertaken by Sri Lanka and their significant impact on the domestic population. Directors at the executive board meeting applauded Sri Lanka’s courage in publishing the governance diagnostic, a pioneering effort in Asia.

Senior Mission Chief for Sri Lanka, Peter Breuer noted that encouraging signs were noted regarding the program’s impact on stabilizing the economy, particularly in policy-oriented variables and fiscal areas. A recent meeting revealed promising revenue collection, indicating the effectiveness of implemented policies since reaching a staff level agreement in the second half of 2022.

Mr. Peter Breuer told President Wickremesinghe, “With respect to revenue collection, in fact, we had a meeting that showed very encouraging numbers that basically highlight that the policies you implemented beginning from after we reached the staff level agreement in the second half of 2022 are working, that they have the intended effect, that you’re collecting the revenue that’s needed to address the cause of the crisis. So, that really is very good news.”

The board meeting recognized Sri Lanka’s success in reducing inflation significantly, attributing it to the government’s efforts in monetary policy and scaling back monetary financing. Positive outcomes, such as an increase in reserves, were also observed. The ongoing governance reforms were acknowledged as positive indicators, contributing to tentative economic growth in the third quarter, particularly in capital formation and machinery.

As the IMF plans its upcoming formal review and Article 4 consultation, key areas of focus include the new public financial management law, potential conflicts with the public-private partnership law, electricity tariffs and urgent preparations for property taxation. The IMF stressed the importance of perseverance with ongoing reforms, addressing fiscal issues and advancing governance agendas.

The meeting also highlighted the urgency of addressing fiscal matters, including passing amendments to the Banking Act and recapitalizing the banking sector.

On the governance front, operationalizing the Anti-Corruption Commission, publishing action plans and meeting with the Constitutional Council for insights into commissioner selection processes were discussed.

The IMF commended Sri Lanka’s partnership on capacity development, emphasizing the importance of enhancing the skills of the civil service for the success of ongoing reforms. The program aims to build capacity in the civil service, crucial for the implementation of reforms.

The authorities expressed approval for the program and discussions on its rollout and impact will continue in the coming weeks.

As the two-week mission unfolds, further discussions between Sri Lankan authorities and the IMF are expected to delve deeper into these key areas, providing a comprehensive overview of the progress and challenges in Sri Lanka’s economic reform journey.

(PMD)



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Those who benefited from irregular and unregulated systems are currently opposing the reform efforts of the government – PM

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Prime Minister Dr. Harini Amarasuriya stated that those who benefited from irregular and unregulated systems are currently opposing the reform efforts of the government and that the government possesses a coherent and methodical strategy aimed at addressing the public’s concerns through sustainable and permanent solutions, rather than offering temporary responses.

The Prime Minister made these remarks today (03 May), while addressing a public gathering held in the municipalities of Kaduwela and Dehiwala, Mount Lavinia.

Addressing the gathering, Prime Minister further stated:

You are well aware of the state the country was in when we assumed office. It is not only the political culture that necessitated change, but a similar transformation was also required within the public sector. That transformation is currently underway.

In addressing issues such as flooding, our response has been limited to relief services. However, we must move beyond that and implement systems to minimize and manage such disasters. This same pattern where temporary solutions were implemented without proper mechanisms can be seen across all sectors. Similarly, the public service has become accustomed to this ineffective approach.

When systemic reforms are introduced in a culture that is accustomed to disorder, those who previously benefited from the irregularities perceive these changes as a threat to their interests and therefore resist. These groups are attempting to obstruct the process of transformation.

Nevertheless, the country cannot progress under the prevailing methods. It was precisely due to such flawed systems that our economy collapsed. Now, with a methodical and structured approach, the government is steadily restoring economic stability. These systems are being developed to equip the nation to face ongoing and future economic challenges.

Decisions taken by U.S. President Donald Trump has had significant global ramifications, impacting both Europe and Asia. The long-standing belief that certain countries will always dominate the global economy is being challenged. Amidst this shift, new economic opportunities are arising, and Asia is poised to take a leading role in the global economic order. Sri Lanka must therefore determine where it stands within this evolving context. To do so, we must manage our international relations prudently and establish transparent governance systems. Our objective is to achieve long-term stability through these means.

We have not yet been able to fill teacher vacancies, which has led to a crisis. The lack of planning and reactive decision-making have severely affected the education sector. This is indicative of the wider trend across national issues offering surface-level solutions while failing to resolve the underlying causes. It is imperative that this government works in such a way that no unresolved issues are passed on to the next administration.

The grade five Scholarship examination has become a matter of concern. The issue does not lie in the awarding of scholarships, but in the necessity for students to transfer to schools with better facilities in order to access them. To rectify this, the disparities among schools must be addressed. The government has already commenced work in this regard through a planned and coordinated approach.

We continue to identify the problems faced by citizens and develop both short-term and long-term solutions accordingly. Step by step, we are moving forward in rebuilding international confidence, attracting investment, and laying a strong foundation for the country’s future.

The implementation of the law by the police was previously hindered by the political culture which prevailed at the time. These institutional issues are now being rectified.”

The Prime Minister underscored that the establishment of a constructive political culture is essential for the development of the country and that public support is vital in advancing the government’s national development agenda.

[Prime Minister’s Media Division]

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Heat Index at Caution Level at some places in Eastern, Northern and North-central provinces and in Monaragala, Hambantota and Kurunegala districts

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Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology at 3.30 p.m. 02 May 2025, valid for 03 May 2025

Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in Eastern, Northern and North-central provinces and in Monaragala, Hambantota and Kurunegala districts

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED

Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.

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President to undertake a state visit to Vietnam on May 04

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At the invitation of the President of Vietnam,  Luong Cuong, President Anura Kumara Disanayake will undertake a State Visit to Vietnam from May 4 to 6. Accordingly, the President is scheduled to depart Sri Lanka tonight [May 3].

This visit marks the celebration of 55 years of diplomatic relations between Sri Lanka and Vietnam and is expected to further strengthen the long-standing bilateral ties between the two nations.

During the visit, President Disanayake will hold official discussions with the President and Prime Minister of Vietnam. He is also scheduled to meet with senior dignitaries, including the General Secretary of the Communist Party.

President Anura Kumara Disanayake will also participate as the Chief Guest at the United Nations Vesak Day celebrations, scheduled to commence on May 6 in Ho Chi Minh City, where he will deliver the keynote address.

Several Memorandums of Understanding and Agreements are expected to be signed during the visit and discussions will be held with the Vietnamese business community to explore avenues for enhanced cooperation.

Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath, along with a delegation of senior government officials, will accompany President Disanayake on this official visit.

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