IMF’s US$ 2.9 bn loan approval will stabilise economy – State Minister

Sri Lanka expects the approval of the Director Board of the International Monetary Fund (IMF) for its US$ 2.9 billion loan by December this year in order to stabilize the country’s economy following the severe economic crisis,  State Finance Minister Shehan Semasinghe said. He said the country has already reached a staff level agreement with the IMF while all the stakeholders relating to the country’s debt have not expressed their objection to the debt restructuring.

The President, the government and government officials are fully dedicated to obtaining approval from the IMF for this loan facility, which would be helpful to make an economic conversion in the country, he said.

The state minister was addressing the media at the Department of Government Information yesterday.

“Through the stabilization of the economy, the country will be upgraded to upper levels by the international rating companies thus setting up the confidence within the international investors. Increasing the exports and attracting more investments would stabilise the country’s economy. The Budget -2023 has been formed to achieve this target,” he further said.

According to the state minister, this is the most challenging budget in Sri Lankan history. It is not merely a conventional budget. The main target of the budget for 2023 is to bring down the budget deficit to 7.9 per cent. “If we attempt to take popular decisions through this budget, the situation of the country’s economy would further deteriorate.”

Labour and Foreign Employment Minister Manusha Nanayakkara speaking on this occasion said the Budget 2023 is the document which paves the way for Sri Lanka to become a developed country by 2048.

It includes all the reforms that the country should make in order to achieve this target, he said.

This budget expects to make changes and reforms in the educational sector, public administration sector, tourism and investments and to set up a production-based economy in the country, the minister said.