‘IMF to spell out measures to improve SL’s governance system’

The International Monetary Fund’s (IMF) governance diagnostic exercise report, which was the first such programme in Asia, is expected to be completed by September and the global lender will spell out measures to improve Sri Lanka’s governance system, Director, Asia and Pacific Department of the IMF Krishna Srinivasan said.

“Sri Lanka is the first country in Asia to undergo an IMF governance diagnostic under the global lender’s key structural reform to address corruption vulnerabilities and enhance growth, Srinivasan, told a media briefing at the Central Bank auditorium on Monday. He made these remarks after concluding a four-day visit during which the global lender’s delegation met key officials of Sri Lanka.

Extracts from Srinivasan’s presentation: ‘The IMF governance diagnostic report is expected to be published by September this year—the mission visited Colombo in March and engaged closely with stakeholders and civil society organizations on this critical reform area.

‘The governance diagnostic exercise will identify key governance weaknesses and corruption vulnerabilities that are macro economically critical in six key areas – fiscal governance, financial sector oversight, central bank governance, market regulations, rule of law, and AML (Anti- Money Laundering) safety.

‘It also assesses the adequacy of the anti-corruption framework. The report will be used to formulate measures to improve the governance framework and reduce corruption and the measures will be factored in the IMG programme going forward.

‘Sri Lanka has committed to introduce anti-corruption legislation in line with the UN Convention against Corruption, which includes both asset declaration and asset recovery.

‘Asset declaration part is going to be addressed in the near term and the anti-corruption law is expected to be presented to parliament soon.

‘The asset recovery laws are expected to be passed by March 2024.’ (HS)