The International Monetary Fund (IMF) review on Sri Lanka would be in around six months as the island nation is placed on a semi-annual review (two reviews per year) basis, said Director of Communications at the IMF, Julie Kozack, at their Press briefing.
She said that an IMF team is currently visiting Sri Lanka on a ‘staff visit’ until May 23 and this is part of an interim visit ahead of the first review. “It’s a technical mission and the first review of the program will take place later this year.”
Kozack said that on March 22 the IMF Executive Board approved a 48-month extended arrangement, an EFF for US$3 billion to support Sri Lanka’s economic policies and programs. The IMF with the World Bank and India as G20 presidency, have established a Global Sovereign Debt Roundtable where we have invited creditors, debtor countries, like the Paris Club, new official creditors like China, India, Saudi Arabia, and also private sector creditors, along with debtor countries, borrowing countries, all to sit around the table to try to find ways to reach common ground and to accelerate the debt restructuring process for countries whose debt does need to be restructured.”
She said this is done as the IMF assesses that 15% of low-income countries are in debt distress and another 45% of low income countries are at risk of debt distress and IMF focus is on supporting the countries that are in debt distress. “The efforts that we have made to help countries resolve and tackle their debt challenges include a wide range of measures.”
First, many of these countries have IMF-supported programs, supporting important policy reforms to help countries restore stability. “We are also, of course, supporting the G20 Common Framework which aims to deliver debt relief to countries whose debt is unsustainable and to help advance and accelerate progress with the Common Framework.”
Asked to comment on Zambia and Pakistan she said that Zambia has met all structural benchmarks and quantitative performance criteria for the first review and their teams are heavily engaged with the Pakistani authorities. Pakistan faces a very challenging situation, the economy is facing stagflation.
“India is a bright spot as it is having very strong growth and we do see it as an important player in the region and an important support for the global economy. On the digital currency in India, it is making very rapid progress in developing a digital public infrastructure which has improved financial inclusion, social inclusion and has also helped deliver healthcare services. These are lessons that could be drawn from India’s experience for other countries.”