The International Monetary Fund (IMF) has cautioned that while Sri Lanka has made notable progress in its economic recovery, the nation is still vulnerable and must work to protect the hard-earned gains it has achieved so far. Speaking at an IMF press briefing on September 12, Director of the IMF Communications Department Ms. Julie Kozack, emphasized the importance of sustained reforms and vigilance, especially with the upcoming presidential elections.

Kozack acknowledged the role of the people of Sri Lanka in determining the nation’s political future, noting, “It is important to understand that the outcome of the elections is for the people of Sri Lanka to decide. However, achieving the objectives of the IMF program is crucial to help Sri Lanka emerge from one of the most severe crises in its history. As I’ve already noted, a lot of progress has been made, but the country is not out of the woods yet, and it is important to safeguard those hard won gains.”

She highlighted key milestones the country has achieved under the IMF’s Extended Fund Facility (EFF) program. In June, the IMF’s Executive Board concluded the 2024 Article IV Consultation and the Second Review of the EFF, unlocking around USD 336 million in funding. Kozack reported that economic growth is beginning to recover, inflation is subsiding, international reserves are growing, and revenue collection is improving.

Despite this positive progress, Kozack warned that Sri Lanka remains exposed to significant economic risks. “Sustaining the momentum of reforms is essential,” she added.

On the subject of debt restructuring, Kozack responded to questions about private creditors submitting their proposals to the IMF, particularly in relation to Sri Lanka’s domestic debt restructuring efforts. She pointed out that key milestones had been achieved with the execution of domestic debt restructuring and agreements with the official creditor committee and EXIM Bank of China. However, she was careful to note that the IMF does not engage in direct negotiations between Sri Lanka and its creditors, instead offering an overall assessment of debt sustainability.

Kozack reiterated that while the IMF supports Sri Lanka’s reform efforts, the timing of the Third Review will depend on the outcome of the upcoming elections. “Program discussions will resume after the elections, once a new government is in place,” she stated.

The IMF’s message remains clear: Sri Lanka has come a long way, but the path to full recovery requires on-going commitment to reforms and a focus on economic stability.

Lankans arrested on terrorism charges:

‘Foreign Ministry didn’t bother at least to update us on their status’

By Shamindra Ferdinando

The All Ceylon Union of Muslim League Youth Fronts (ACUMLYF) yesterday (15) said that the government owed an explanation regarding the arrest of four Sri Lankans on terrorism charges in Gujarat in late May this year.The grouping President Sham Nawaz said that though they had made representations in this regard to State Foreign Minister Tharaka Balasuriya in the first week of June, the Foreign Ministry at least didn’t bother to respond.

“We are concerned about the arrested persons’ wellbeing,”

Nawaz said, declaring that the families of the detained have a right to know what was going on. Nawaz pointed out that some reports suggested that the arrested persons had arrived in India to cause mayhem during the general election.

Nawaz emphasized that their effort shouldn’t be misinterpreted as an attempt to intervene on behalf of a group dubbed terrorists. The arrests were made by the Gujarat Anti-Terrorist Squad. Responding to another query, Nawaz said that they emphasized the responsibility on the part of the government to represent the interests of the detained persons in terms of the Vienna Convention on consular assistance.

Pointing out the conflicting claims regarding the arrests made on May 19/20, Nawaz said that Sri Lanka should seek access to the detained men without further delay.

Asked whether the families of the detained or some other interested party sought their intervention or he knew them personally, Nawaz emphasized that ACUMLYE stepped-in on its own.

Nawaz said that the delegation received an assurance from State Minister Balasuriya that consular matters would be duly followed up and due consideration would be given to the issues at hand raised by them.

Nawaz said that the delegation stressed the need for an independent local investigation as many raised doubts over the continuing allegations regarding the ISIS operations here. Such fears impacted the economy in many ways, Nawaz said, reiterating the responsibility on the part of the government to conduct no holds barred investigation into the allegations made by Indian authorities.

Contrary to repeated declarations in Indian media that the four arrested at the Sardar Vallabhai Patel airport in Ahmedabad had been linked to ISIS and coordinated by a Pakistani handler, investigations conducted by Sri Lankan authorities contradicted the Indian findings.

Authoritative officials said that India was yet to grant Sri Lankan investigators access to the suspects. Following the arrests made in Gujarat, nearly a dozen suspects were apprehended here, they said. According to them, Indian authorities had been promptly briefed of the status of the investigations conducted here though the two parties were yet to reach consensus on the issue at hand.

Responding to another query, Nawaz said that they wouldn’t seek the intervention of the Indian High Commission here. “We took up this issue with the State Foreign Minister three and half months ago. The FM’s failure to address our concerns is of grave concern and evidence of the pathetic state of affairs,” Nawaz said.

Nawaz alleged that at the drop of a hat those who had been detained in Gujarat were accused of being ISIS operatives. Referring to statements attributed to various Sri Lankan authorities with access to local investigations, Nawaz questioned whether Gujarat remained committed to the original charges or were prepared to reconsider the suspects’ status having taken into consideration investigations conducted by Sri Lankan authorities. Investigations have revealed that all of them had been involved in various nefarious activities over the years but never known for religious extremism.