Date: October 9, 2024 – Cabinet Spokesperson Minister Vijitha Herath has issued a stern warning regarding the potential consequences of altering the existing IMF agreement, asserting that any changes could lead to a collapse of Sri Lanka’s economy.
During a recent inquiry, Minister Herath highlighted that an alternative debt sustainability analysis had not been conducted with the country’s debt holders. He emphasized that the current economic framework must remain intact to prevent significant long-term challenges.
“The economy will continue under the existing system without allowing it to collapse,” he stated. “If we attempt to reassess whether our current path is correct, we could face substantial economic difficulties for an extended period.”
Minister Herath referenced discussions held with representatives from the International Monetary Fund, indicating that preliminary conversations have taken place concerning how the new government would approach the situation. However, he clarified that no definitive decisions have been made regarding structural changes.
“We have not yet established a government of the National People’s Force. Only the president has been appointed. We ask for support in establishing a government that will provide further relief to the people,” he said.
He reassured the public that the existing system with creditors has not been altered, underscoring the importance of maintaining the current economic strategies that prevent further deterioration.
“The economy is operating under a method that has been effective in avoiding collapse. Changing course now to reassess our strategies will likely lead to severe economic repercussions,” Minister Herath warned.
As the country navigates its complex economic landscape, the government remains focused on stabilizing the economy and ensuring the well-being of its citizens.
