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IMF team gives prognosis for Lanka at conclusion of nearly two-week visit

Upon completion of its mission to Sri Lanka, the International Monetary Fund (IMF) review team has said that maintaining the economic reform momentum and ensuring timely implementation of the IMF-supported programme’s commitments are essential for Sri Lanka to emerge from the current economic crisis.
The mission discussed recent economic developments and the implementation of the IMF-supported programme including additional fiscal efforts that will be critical to ensure successful revenue mobilization for Sri Lanka, and the debt restructuring process, not excluding the ongoing discussions with both foreign and domestic creditors.
Issuing a statement, the IMF team said, “Achieving timely restructuring agreements with creditors, in line with the programme targets by the time of the first review, is essential to restoring debt sustainability. Keeping up the reform momentum and ensuring timely implementation of programme commitments, including to ensure central bank independence, improve governance, and protect the vulnerable, are key for Sri Lanka to emerge from the economic crisis”.
An IMF mission, led by Peter Breuer and Masahiro Nozaki, conducted a staff visit to Colombo from 11 to 23 May.
Accordingly, while recent macroeconomic and financial sector developments were discussed during the meeting, the staff team recognised that following strong policy efforts, the macroeconomic situation in Sri Lanka is showing tentative signs of improvement, with inflation moderating, the exchange rate stabilizing, and the Central Bank rebuilding reserves buffers.
Despite these advancements, however, they highlighted that the overall macroeconomic and policy environment remains challenging.
“We welcome the authorities’ ongoing efforts in meeting key commitments under the Fund supported programme. Performance under the programme will be formally assessed in the context of the first review of the Extended Fund Facility arrangement, which is expected to be undertaken in September 2023”, the statement further read.
During their visit, the IMF staff team met with President and Minister of Finance Ranil Wickremesinghe, CB Governor Weerasinghe, Secretary to the Treasury Siriwardana, senior government officials, members of the opposition parties, CSOs, think tanks, trade unions, the private sector, and development partners.
“We would like to thank the authorities for the open and collaborative discussions and look forward to our continued close engagement”, the statement concluded.
News
LG elections to be staggered

Signs are clear that the local government (LG) elections, originally scheduled for 06 May, will have to be held on a staggered basis, as nomination lists in respect of about 200 out of 339 LG institutions have been challenged before the Court of Appeal, according to sources.
Those who have filed cases in the Court of Appeal seek writs against holding the elections. The final date for filing cases is 21 April.
By yesterday only 113, out of 339 local government bodies, had been cleared for the 06 May elections, with no rejections of nomination lists, or objections, sources said. The nomination lists for 226 local government bodies have been rejected, and candidates on these rejected lists are entitled to file cases against the Election Commission (EC) until 21 April.
The Court of Appeal (CA) has ordered that some of the lists rejected by the Election Commission be accepted. However, the EC is planning to challenge all CA orders before the Supreme Court.
When contacted for comment, Director General of the Election Commission, Saman Sri Ratnayake, told The Island that all arrangements had been made to hold the elections on 06 May, in accordance with the provisions of the Local Authorities Elections (Amendment) Act No. 16 of 2017.
“We will hold elections to the local government bodies for which there are no legal barriers, and this will depend on the final decision of the courts,” Ratnayake said, adding that elections to other local government bodies would be held on later dates.
By Saman Indrajith
News
Sri Lanka and Australia reaffirm commitment to deepening defence ties

Sri Lanka and Australia have reaffirmed their commitment to deepening defence ties and exploring new avenues for cooperation in areas such as maritime domain awareness (MDA), training exchanges and capacity-building initiatives.
A number of key matters of mutual interest, particularly in the area of defence and security cooperation were deliberated when the Australian High Commissioner to Sri Lanka, Paul Stephens, paid a courtesy call on the Deputy Minister of Defence, Major General (retd.) Aruna Jayasekara at his office in Colombo on Tuesday (April 8).
The meeting was held in a cordial and constructive atmosphere, reflecting the longstanding friendship and cooperation between Australia and Sri Lanka, the Ministry of Defence said in a statement.
The Deputy Minister has expressed his appreciation for Australia’s continued support in strengthening Sri Lanka’s maritime security and defence capabilities.
Highlighting a recent example of this collaboration, Major General Jayasekara acknowledged the significant contribution made by the Australian government through the donation of a state-of-the-art Shallow Water Multi-Beam Echo Sounder to the Sri Lanka Navy Hydrographic Service (SLNHS). He noted that this advanced equipment has brought a transformative enhancement to Sri Lanka’s capacity for surveying harbours, coastal areas and strategic waterways, thereby contributing to both national security and regional maritime stability, the statement added.
News
Over 200 women entrepreneurs benefit from Japanese-funded project

Marking the end of the project “Pathways to Peace: Realizing the National Action Plan on Women, Peace, and Security in Sri Lanka”, in-kind assistance ceremonies and Diversity Markets were held from 26h to 29th March in the Districts of Anuradhapura and Batticaloa supporting 206 women entrepreneurs, according to a Japanese Embassy press release.
It said: The project is supported by the Government of Japan, which provides financial assistance amounting to 1.7 million USD.
Implemented by UN Women in collaboration with Chrysalis and supported generously by the Government of Japan, this initiative made substantial strides in empowering women-led businesses in conflict-affected areas, including Anuradhapura, Batticaloa, Mannar, and Mullaitivu.
Through the implementation of the project, over 460 women entrepreneurs have gained valuable skills through targeted training in business planning, financial literacy, and product innovation. These capacity-building sessions have not only helped refine business models but have also been complemented by training on market access and technology transfer, promoting sustainable practices.
This partnership reflects Japan’s enduring commitment to gender equality and inclusive progress, aligning with shared goals outlined in the 2030 Agenda for Sustainable Development and the Women, Peace, and Security Agenda. By fostering pathways to economic empowerment, the initiative contributes to lasting peace and development in Sri Lanka.
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