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IMF review must precede re-look at taxes: Shehan
ECONOMYNEXT –Sri Lanka will have to wait till the International Monetary Fund (IMF) has completed its first review of the ongoing IMF programme for the government to review its own fiscal policy, an official said, noting however that it will not step out of the programme’s framework regardless.
State Minister of Finance Shehan Semasinghe told reporters on Sept. 14 that state revenue had not increased to desired levels. He was responding to questions about ongoing protests by university lecturers against an IMF-prescribed tax hike and whether professionals can expect some relief at the end of this quarter.
“Let’s wait and see until the review is over. State revenue is not where it was expected to be. There are several reasons for that. Until the end of the review, we cannot make a clear statement on how we can bring state revenue to adequate levels,” said Semasinghe.
The state minister said the IMF review, which began on September 14, will continue for two week.
“Let’s see what we’re told after that. Regardless, the government is not prepared to work outside the framework of the IMF programme,” he added.
Semasinghe said the government wants the IMF’s 2.9 billion dollar extended fund facility (EFF) to be the last such facility from the international lender.
“The government has already formulated a strong legal framework, instilled fiscal discipline and transparency and accountability that’s needed for that,” he said.
The state minister is also optimistic that there will be no trouble receiving the second tranche of the EFF saying Sri Lanka has fulfilled its obligations and there will be no problem on that score.
At talks on Friday morning, an IMF delegation currently in Sri Lanka have discussed with Finance Ministry and Central Bank officials the challenges ahead both domestically and externally with regard to macroeconomic policy, he said.
“We expect that after this review is over, we can get the second tranche. The second tranche will signal to the world that they can be confident about Sri Lanka’s reforms and reliability.”
Latest News
IMF Executive Board approves US$206 Million in Emergency Financial Support for Sri Lanka
The IMF Executive Board approved emergency financing under the Rapid Financing Instrument (RFI), providing Sri Lanka with immediate access to SDR 150.5 million (about US$206 million,
equivalent to 26 percent of quota) to help Sri Lanka address the urgent needs arising from the catastrophic Cyclone Ditwah and preserve macroeconomic stability.
In response to severe weather impacts, the Sri Lanka Navy conducted a diving and technical assistance operation on Friday (19 Dec 25) to clear major debris obstructing vital infrastructure.
Heavy rainfall caused a significant rise in the water level of the Mahaweli River, washed large quantities of debris, including logs and bamboo, downstream. These remain lodged in the Diyakapanathota in Gatambe, Peradeniya and Lewella bridges, obstructing the smooth flow of water.
Acting promptly upon request, a Navy diving team executed a coordinated operation in collaboration with the Road Development Authority. The team removed the accumulated debris, restoring normal water flow through the bridges.
Latest News
Landslide early warnings issued to the districts of Badulla, Kandy, Kurunegala, Matale and Nuwara-Eliya extended till 8AM on Sunday (21)
The Landslide Early Warning Centre of the National Building Research Organization (NBRO) has extended the Landslide Early Warning issued to the districts of Badulla, Kandy, Kurunegala, Matale and Nuwara-Eliya till 08:00AM on Sunday (21st December 2025)
The LEVEL III RED landslide early warnings issued to the Divisional Secetaries Divisions and surrounding areas of Medadumbara, Doluwa, Ududumbara and Minipe in the Kandy district, and Nildandahinna, Hanguranketha, Mathurata and
Walapane have been extended.
LEVEL II AMBER landslide early warnings have also been issued to the Divisional Secetaries Divisions and surrounding areas of Soranathota, Hali_Ela, Passara, Meegahakivula, Badulla, Lunugala and Kandeketiya in the Badulla district, Thumpane, Harispattuwa, Udapalatha, Kundasale, Akurana, Poojapitiya, Udunuwara, Pathadumbara, Pasbage Korale, Gangawata Korale, Hatharaliyadda, Yatinuwara, Ganga Ihala Korale, Panvila, Pathahewaheta and Deltota in the Kandy district, Rideegama in the Kurunegala district, Ukuwela, Naula, Matale, Ambanganga Korale, Rattota, Pallepola, Wilgamuwa, Yatawatta and Laggala Pallegama in the Matale district, and Nuwara-Eliya in the Nuwara-Eliya district.
LEVEL I YELLOW landslide early warnings have been issued to the Divisional Secetaries Divisions and surrounding areas of Uva Paranagama, Welimada, Haputhale, Haldummulla, Ella and
Bandarawela in the Badulla district, Alawwa, Mallawapitiya,
Polgahawela and Mawathagama in the Kurunegala district, and Kothmale East, Ambagamuwa Korale, Kothmale West, Thalawakele and Norwood in the Nuwara-Eliya district.
IMF Executive Board approves US$206 Million in Emergency Financial Support for Sri Lanka
Navy clears major bridge obstructions in Peradeniya and Lewella
Landslide early warnings issued to the districts of Badulla, Kandy, Kurunegala, Matale and Nuwara-Eliya extended till 8AM on Sunday (21)
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PM says govt. will introduce a new Constitution to abolish executive presidency
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