The International Monetary Fund has released 162 million US dollars under its three year programme with Sri Lanka, stating economic conditions have started to improve and tax hikes are helping improve budgets.
The completion of the review enables the disbursement of the equivalent of about US$ 162.6 million, bringing total disbursements under the arrangement to the equivalent of about US$ 325.1 million.
Earlier, US$ 163 million was released under the arrangement.
Sri Lanka’s three-year extended arrangement was approved on June 3, 2016 in the amount of about US$1.45 billion.
Tao Zhang, Acting Chair and Deputy Managing Director of the IMF is quoted as saying that Sri Lanka’s performance under the fund-supported programme has been broadly satisfactory despite challenging circumstances. However, he has urged Sri Lanka’s rulers to keep a watch on spending.
The statement goes on to say that the reinstatement of the amendments to the value added tax will help boost revenues. The statement further adds that the 2017 budget proposal aims to strengthen government finances through revenue mobilisation, while guarding against revenue shortfalls by aligning spending with revenue on a quarterly basis.
Speaking to reporters today, the Finance Minister made a statement on the IMF announcement.
He further stated that the IMF required a 4.7% budget deficit but 4,6% has been done
“What is good is done by us. Nobody can dictate to us”, said the Minister of Finance who went on to note that it was the President and the Prime Minister who set the pace and the people have an expectation of the promises that were given and it will be complied with and done it to the best of ‘our ability’.
“And that is why we have got 162.2 million US dollars”, he said
The Finance Minister also noted that this is the committment to show that the the government is moving towards the correct side and there is no linkage between multilateral lending agencies or anybody towards this journey.
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