Implement IMF programme in transparent, credible manner
Sri Lanka, which is facing its worst economic crisis since independence from Britain in 1948, must show the world that the island nation is serious about fixing its economy thereby implementing the IMF programme in a transparent and credible manner, says Dr. Ganeshan Wignaraja.
Apart from that, Dr. Wignaraja said it is essential to build a national consensus for the IMF programme in addition to publicizing the progress of the implementation of the bailout programme.
“Sri Lanka has been a recipient of 16 IMF programmes. I believe that half of them have not been properly implemented.” Dr. Ganeshan Wignaraja , Senior Fellow National University of Singapore , Senior Research Associate –Overseas Development Institute told a webinar organized by Centre for Banking Studies, held under the theme, ‘Confronting the Current Foreign Exchange Crisis in Sri Lanka ; Lessons from Global Experience’.
Noting that the IMF bailout programme would be the only solution for Sri Lanka’s current economic crisis, Dr. Wignaraja added that bridging finance is also needed urgently from India , Japan , China and Western countries to provide basic needs for the people particularly fuel, food, medicine and to stabilize the economy.
In a bid to convince supportive countries and to gain their confidence, Dr. Wignaraja emphasized the need to fairly distribute foreign aid across the country that Sri Lanka receives from countries such as India, China or US or crack down on anyone, siphoning off this kind of humanitarian aid.
“If such a thing does not take place, this would lead Sri Lanka to a terrible fate where the country will lose complete confidence in its ability to manage public services in a credible manner.”
Moreover, Dr. Wignaraja highlighted the importance of pursuing a strict and non aligned foreign and economic policy and added that If these measures are implemented properly, Sri Lanka will have a fair chance of getting decent scores on the board and turning things around with foreign assistance.