IMF Agreement has seven months remaining as Ravi Karunanayake urges government to reveal results, costs, debt data, and future strategy.
IMF Agreement deadlines have come under fresh scrutiny after Parliamentarian Ravi Karunanayake today (09) called on the government to immediately explain the results of Sri Lanka’s current programme with the International Monetary Fund and the economic strategy planned beyond it.
Karunanayake raised the issue after the IMF Executive Board approved the combined fifth and sixth reviews under the Extended Fund Facility, releasing another loan tranche of US$ 695 million to Sri Lanka.
The Parliamentarian said the current arrangement is due to expire in just seven months, making it necessary for the government to tell the country whether a proper assessment has been conducted on the economic, social, and financial outcomes of the IMF-EFF programme that began in 2023.
Speaking further in Parliament, Ravi Karunanayake asked whether such an assessment had determined that the objectives of the programme had been achieved.
“What are those objectives and to what extent have they been fulfilled? The government must present details,” he said.
He also questioned whether the government believes the sacrifices made by the public, including the burden of higher living costs, increased taxes, fuel prices, and electricity tariffs, had actually improved living standards and economic well-being.
Karunanayake further asked whether the economic growth, job creation, foreign investment inflows, and export expansion expected at the start of the programme had been realised.
If those goals had not been met, he asked the government to explain what deficiencies had affected them.
He also requested assessment reports on the impact of the reforms on Small and Medium Enterprises, the self-employed, salaried workers, and vulnerable groups among the general public.
The Parliamentarian also questioned whether Sri Lanka can maintain economic stability and sustain debt sustainability without entering into a new IMF agreement.
If the government does not intend to proceed with another IMF programme, he asked it to present an alternative national strategy to reduce the cost of living, sustain growth, and protect public welfare.
Karunanayake also questioned how targets that were not fully achieved under the current programme would be met in the future through such an alternative plan.
Finally, he strongly urged the government to present Parliament with the total cost of Sri Lanka’s entire IMF programme, including principal and interest payments due at maturity.
He also requested precise data on annual foreign debt service commitments from 2028 to 2048, including principal and interest payments, and the amount of US dollars required each year to service the country’s foreign debt.
