• Semasinghe speaks of expected recovery following IMF second tranche grant 

Sri Lanka’s projects that have been halted due to the economic crisis are to be recommenced once the second tranche of the Extended Fund Facility (EFF) under the International Monetary Fund (IMF) is received. Speaking in Parliament, State Minister of Finance Shehan Semasinghe made these remarks yesterday (30 November).

State Minister Semasinghe said: “We received a remarkable decision made by Sri Lanka’s Official Creditor Committee (OCC), as it has been discussed, expressing their agreement in debt restructuring. Therefore, we (the Government of Sri Lanka) express our gratitude to the creditor nations, which consist of 17 countries, and whose chairmanship was held by France, Japan, and India.” 

He added that in April this year, the OCC was launched to fasten the debt restructuring process in Sri Lanka, along with creditors. Although China did not hold official membership, it provided the support that was needed. Thus, the OCC, including all member countries from the Paris Club, have expressed their agreement. 

Thus, Semasinghe said, the Government anticipates that the Executive Committee of the IMF would green-light the grant of the second tranche in order to further stabilise the economy of the country, while observing that economic growth could be expected in 2024.

The State Minister noted that discussions with the private creditors are also to be continued. He opined that President Ranil Wickremesinghe’s leadership has assisted this cause by ensuring that a fair and transparent methodology is carried out, while the Ministry of Finance and the Central Bank of Sri Lanka (CBSL) also equally contributed in making this a success.     

During the Monetary Policy Review held at the CBSL premises last year, its Governor Dr. Nandalal P. Weerasinghe also assured that the second tranche of the IMF is expected this month, saying: “I am confident that we are making very good progress, and we’ll get assurances from all official creditors soon to complete the first review by the IMF.”