By Ifham Nizam

The International Monetary Fund (IMF) has become a polarizing figure in Sri Lanka as the country grapples with a deep economic crisis. The austerity measures proposed by the IMF, aimed at addressing the nation’s debt burden, have sparked widespread discontent among ordinary citizens, said Hemantha Withanage, Chair of Friends of the International, a large network of grassroots environmental organizations from 74 countries.

Withanage added that the roles of the IMF and the World Bank in Sri Lanka over the past eight decades have been significant but complex. While their contributions to economic stabilization and development are notable, they have also provoked challenges and criticisms regarding social equity and governance.

He stressed that the critical question remains whether the people of Sri Lanka have truly benefited from their long-standing relationship with these institutions—a dilemma that continues to persist.

Speaking to The Island Financial Review, Withanage highlighted that the IMF’s influence in Sri Lanka dates back decades, shaping the country’s economic landscape through financial assistance, policy advice and development projects. However, the recent debt crisis, exacerbated by the pandemic and geopolitical tensions, has brought the IMF’s role into sharp focus.

Withanage added: ‘The IMF’s proposed measures, including tax hikes and spending cuts, have been criticized for disproportionately affecting the poor and vulnerable. Many argue that the government should prioritize debt restructuring and explore alternative avenues for economic recovery rather than imposing harsh austerity measures.

`Despite these challenges, the IMF remains a key player in Sri Lanka’s economic future. The country’s recent agreement with the IMF for a bailout package offers a glimmer of hope, but the road to recovery is likely to be long and arduous. As Sri Lanka navigates these turbulent times, the debate over the IMF’s role and the effectiveness of its policies will continue to shape the country’s economic destiny.

`IMF has become a prominent topic in Sri Lanka due to the austerity measures it proposed to address the country’s debt crisis. These measures have increased taxes for ordinary citizens, while the previous interim government warned that Sri Lanka would face further difficulties if it did not adhere to the IMF package agreed upon in mid-2022.

‘The IMF package was a key issue in the recent presidential election, resulting in a significant loss for the interim president, a strong proponent of IMF solutions. The election was won by left-party politician Anura Kumara Dissanayake, who takes a more measured approach to the IMF.

`Over the past 80 years, IMF and the World Bank involvement in Sri Lanka has included a mix of financial assistance, policy advice, and development projects, significantly influencing the country’s economic trajectory.

‘The IMF’s and World Bank’s impact on Sri Lanka’s economy and society has been multifaceted. On the one hand, their financial assistance and development projects have contributed to essential advancements in infrastructure, health, and education. Rural communities have benefited from improved access to basic services and economic policies supported by the IMF have, at times, restored macroeconomic stability.

‘On the other hand, the social costs associated with structural adjustment programs and austerity measures have raised concerns. Focus on market-driven policies often overlooked the needs of the most vulnerable populations. Inequality and poverty remain pressing challenges, as the benefits of growth have not been evenly distributed. Whatever the solutions these spin doctors have given, about 24% of the population became poor due to the debt crisis that began in 2020.

‘According to a more recent report by the FAO and the United Nations World Food Programme, it is estimated that 3.9 million people or 17% of the population, are in moderate acute food insecurity. The IMF has trained bureaucrats and politicians to praise its work and seek its advice constantly. Since joining the IMF, Sri Lanka has received assistance at least 16 times. While we’ve addressed some issues, our debt continues to rise, adversely affecting the population.’

Under the UN Decade of Action 2021 – 2030 in Sri Lanka, the Automobile Association of Ceylon (AAC) is currently conducting Road Safety Programmes, especially among schools in the rural areas, aimed at impressing on elders and children the advisability of wearing helmets while riding two-wheeler vehicles.

During the last weekend such programmes to educate children, parents, teachers, motorcyclists and many others in the Horana area of the importance of wearing helmets were conducted. The safety of children was a prime focus.

Police officers from Traffic Headquarters conducted lectures and demonstrations on the importance of children in particular wearing helmets when they travel with their parents and elders on two-wheelers.

The purpose of this project by the Association is to curtail the fatalities and injuries suffered by motorcyclists and pillion riders. In 2022, it was recorded that there had been 806 deaths among motorcyclists, of which 411 deaths were those of below the age of 18 years. Disabilities amounted to 5,133.

Traffic Police officers of Horana, assisted the Automobile Association by collecting the required data from among children who attend schools in the area but who do not wear helmets when they travel on the motorcycles.

Ananda Dangalla – Vice President & Devapriya Hettiarachchi- Secretary of the Automobile Association of Ceylon together with the OIC Panawala Police Station, Horana, and Dayal Kariyawasam of the Traffic Police headquarters attended the events. A helmets handing over ceremony was held at the police station, Horana and many schoolchildren of the area and their parents attended the function. Fifty children who do not wear helmets but who travel with their parents on motorcycles were selected by the Traffic Police – Horana for the purpose of donating helmets. (AAC)

The Commercial Bank of Ceylon has been ranked second in the prestigious ‘LMD 100’ for 2023-24, moving up five places in the ranking the magazine calls ‘Sri Lanka’s Roll of Corporate Honour.’

With this latest LMD ranking Commercial Bank has not only retained its status as the highest-ranked bank in the LMD 100, but has also overtaken some of the country’s biggest diversified business groups in terms of turnover, on which LMD’s primary ranking is based.

Commercial Bank also has the distinction of being in the Top 10 of the LMD ranking every year since it was first published, 31 years ago.

“The bank is truly delighted to have secured second place in the LMD ranking, a testament to our strong performance over the past financial year,” Commercial Bank Managing Director/CEO Mr Sanath Manatunge said. “It is an unequivocal demonstration of the intrinsic financial strength, deep-rooted resilience and agility of the Bank. This ranking is also a tribute to the commitment of the Commercial Bank team to achieve growth in adversity.”

Besides its turnover-based primary ranking of Sri Lanka’s leading listed companies, LMD also ranks companies by sector as well as by total assets, profit after tax, shareholders’ funds, market capitalisation and other performance indicators. The LMD 100 ranking encompasses many of the country’s leading conglomerates, telcos, retail giants, insurers and other sector leaders, as well as listed banks.