It is now essential to continue the reform momentum - IMF mission Chief

IMF Senior Mission Chief for Sri Lanka Peter Breuer yesterday said that it is now essential to continue the reform momentum under strong ownership by the authorities and the Sri Lankan people more broadly.

Addressing a virtual press conference yesterday, the Mission chief however said that the economic impact of the reforms on the poor and vulnerable needs to be mitigated with appropriate measures.

“In this regard, we welcome the authorities’ firm commitment to strengthen social safety nets, including through a minimum spending floor, well-targeted spending through a new Social Registry, and establishment of objective eligibility criteria. Tax reforms under the programme are designed to be progressive, that is, ensuring greater contributions from high-income earners. Efforts to increase tax revenues should be pursued in a growth-friendly manner while protecting the poor and most vulnerable,” Breuer added.

Sri Lanka is expected to receive the first tranche of the US $ 3 billion bailout amounting to about US $ 333 billion within a couple of days. IMF Mission Chief for

Sri Lanka Masahiro Nozaki said the first tranche of the facility could also be used for government’s expenditure purposes in addition to strengthening the country’s foreign reserves.