Danger of IMF agreements completely breaking down – President cautions

Dollar could go beyond Rs. 500

SJB and NPP have not discussed on their plans yet with IMF

IMF delegation here for talks two weeks after poll

President Ranil Wickremesinghe yesterday said that should the proposals detailed in the NPP election manifesto be implemented, the gap between income and expenditure is anticipated to rise to Rs.4000 billion in 2025, threatening adherence to the IMF agreement.

The President said that, under such circumstances, the rupee will fall below Rs.500 against the dollar.

He added  that the claims  made by SJB leader Sajith Premadasa, regarding his discussions with the IMF concerning the proposals outlined in the SJB election manifesto are false.

The President added that an IMF delegation will visit Sri Lanka two weeks after the Presidential election and country will plunge into situation which more worse than 2022, if government deviates from the IMF programme.

“The people will have to face the situation that existed in the country in May 2022, if these the government does not comply with the ongoing economic reforms,”he said.

Speaking at a meeting with a group of print media journalists at his official residence yesterday, President Wickremesinghe said  that the NPP and the SJB have put forwarded manifestos targeting the forthcoming election, which contained many contractions.

The Present government has come an agreement to obtain foreign loans which do not exceed 5 per cent of the Gross Domestic Production.

The President was of the view that a NPP government will have to secure foreign loans amounting to more than 11.2 per cent from the GDP to bridge the budget deficit which would constitute  a violation of IMF agreement.

“Under such a circumstances, Sri Lanka will lose financial facility from the IMF,”, he said.

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