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IMF Deputy MD: Lanka’s economy showing tentative signs of improvement, but recovery remains challenging

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Sri Lanka’s economy is showing tentative signs of improvement, in part due to the implementation of critical policy actions, Kenji Okamura, Deputy Managing Director of the International Monetary Fund (IMF) said, issuing a statement at the conclusion of his visit to Sri Lanka.

However, the economic recovery remains challenging and it is essential to continue the reform momentum under strong ownership by both the authorities and the Sri Lankan people, he said.

Following are excerpts from his statement: I very much appreciated the constructive discussions I had during my visit, which allowed me to deepen my understanding of the challenges Sri Lanka is facing and to reiterate the IMF’s commitment to support Sri Lanka’s efforts to surmount these challenges.

“I welcomed the authorities’ strong commitment to implement their ambitious economic programme which is supported by the IMF. The economic reform programme aims to achieve macroeconomic stabilisation, restore debt sustainability, safeguard financial stability, strengthen governance, and protect the vulnerable. Sri Lanka’s economy is showing tentative signs of improvement, in part due to the

implementation of critical policy actions. But the economic recovery remains challenging. Now, more than ever, it is essential to continue the reform momentum under strong ownership by both the authorities and the Sri Lankan people.

“The current economic crisis has its genesis in policy missteps aggravated by external shocks. We discussed the importance of fiscal measures, in particular revenue measures, for a return to macroeconomic stability. I was encouraged by the authorities’ commitment to negotiate a debt strategy in a timely and transparent manner. Continued open dialogue with the creditors will help to reach restructuring agreements to restore debt sustainability in line with the program targets. Undoubtedly, safeguarding the stability of the financial sector is of utmost importance in this process.

“….. While meeting with the Parliamentarians, we discussed the importance of strengthening governance, which is a central pillar of the programme. The hard-won gains of Sri Lankan people who have relentlessly supported the reform effort can only be safeguarded by good governance.

“During my visit to the dockyard, port terminal, and the Port City, I was impressed to see continued economic activity which is a testament to the resiliency of the Sri Lankan economy. I underscored the importance of decisive implementation of structural reforms which can attract investment and boost growth.

“As Sri Lanka navigates its way through the economic crisis, it remains imperative to protect the poor and the most vulnerable that have been disproportionately affected by the crisis. I was heartened to see that the authorities’ have stepped up efforts to increase public spending on social safety nets while improving targeting and coverage for those who need it.



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Cardinal: Presidents, IGPs and AG sabotaged Easter carnage probes before 2024 regime change

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Ven. Omalpe Sobitha Nayaka Thera, Malcolm Cardinal Ranjith and Rev. Dr. Andrzej Józwowicz, Apostolic Nuncio in Sri Lanka, at an event held yesterday at St. Anthony's Church, Kochchikade, Colombo, to mark the seventh anniversary of the Easter Sunday terror attacks. (pic by Nishan S. Priyantha)

… successive governments sat on PCoI report handed over in Feb. 2021

His Eminence Malcolm Cardinal Ranjith yesterday (21) alleged that those who were in power from 2019 to September 2024 sabotaged investigations into the Easter Sunday carnage (2019).

Addressing the Seventh Year Commemoration of the Easter Sunday suicide attacks, at St. Anthony’s Church Kochchikade, Colombo, the Archbishop of Colombo said that unlike the present leaders of the country, almost all the power holders, since the 2019 April attacks, including former Presidents, Heads of the Police and the AG’s department officials, instead of sincerely finding out as to who and what was behind the horrific crime, tried their best to confuse the public, muddle up the investigations and appointing all kinds of committees, with highly suspect investigators, in order to come out with conclusions crafted by them, and tried to sabotage the truth from emerging.

In spite of the change of government, in September 2024, certain officials of the “deep state” were seeking to obstruct the smooth flow of ongoing investigations.

Regardless of the Presidential Commission of Inquiry (PCOI) giving clear directives to the Attorney General and to that department to take clear legal and disciplinary actions against some of the political figures, officials of the security establishment and organisations for criminal neglect of duty, very little has so far been done on this matter by them.

The PCoI handed over its report to President Gotabaya Rajapaksa in February 2021.

The Catholic leader emphasised the need to investigate possible links between the Easter Sunday massacre and attacks, targeting the Muslim community, on the night of 5th May and, once again, on 11th, 12th and 13th May, starting from the Nattandiya-Madampe area, through Kotaramulla to Minuwangoda. The Cardinal said: “This may have a link to the main attacks on 21st April 2019. One must also verify as to whether anyone in the security establishment prevented those responsible from controlling these attacks as and when they began.”

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CIABOC asks Parliament not to transfer witness in case against Deputy Secy General

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The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has directed the Secretary General of Parliament Kushani Rohanadeera to cancel an internal transfer of a senior official.

Sources said that the CIABOC intervened as the female official to be transferred is a key witness in the ongoing investigation into the conduct of suspended Deputy Secretary General of Parliament Chaminda Kularatne. The CIABOC has asked the Secretary General to delay the transfer until the conclusion of its investigation.

CIABOC initiated the investigation following a complaint against Kularatne, who himself complained against Speaker Dr. Jagath Wickremaratne over corruption and irregularities.

The female official’s transfer was to take effect on 20 April.

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UN wants Sri Lanka to deliver concrete results in Easter Sunday bombing probe

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The United Nations has urged Sri Lanka to deliver concrete results after long-running investigations into the 2019 Easter Sunday suicide bombings that killed 279 people, including 45 foreigners.

The UN’s top envoy to the country, Marc-Andre Franche, said survivors and families of victims were still waiting for answers, despite multiple probes and renewed political pledges following the formation of a new government in September 2024.

“Public commitments by the government to pursue justice are important and must be welcomed,” he said, as the nation marked seven years since the bombings on Tuesday.

“But what matters now is results,” he said at a remembrance service in Colombo.

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