• SLFP to vote in favour, SJB to decide today

 Some opposition parties and political groups like the National People's Force (NPP) and Uttara Lanka Sabhagaya (ULS) have decided to vote against the agreement Sri Lanka has entered in to with the International Monetary Fund (IMF) which is to be debated on Wednesday (26), The Daily Morning learned.

However, it is learnt that the Sri Lanka Freedom Party (SLFP) has already decided to endorse it, while the main opposition party, the Samagi Jana Balawegaya (SJB) will decide today on if they will support the agreement or not. The NPP and the ULS told The Daily Morning that they plan to vote against the programme this week.

The IMF agreement, which calls on Sri Lanka to enact long overdue fiscal and public sector reforms, also enabled the $ 2.9 Bn Extended Fund Facility (EFF), which is expected to help Sri Lanka move towards an economic recovery.

When contacted Samagi Jana Balawegaya (SJB) Parliamentarian (MP) Kabir Hashim yesterday (23) said that the party will discuss this matter and reach a decision when the SJB group of MPs meet today (24).

“SJB was the first to say that the Government should seek the support of the IMF. But we said to go there with a road map which is suitable for us. We don't see that the Government has such a programme. But we have not yet decided our opinion on this matter. Our aim is to go further with this agreement in the best way for the country. However the final decision will be taken after meeting with all the MPs tomorrow (24),” Hashim said.

NPP MP Vijitha Herath told The Daily Morning that their party has decided to vote in Parliament against the IMF Agreement. He also said that they have observed that this Agreement would harm both the economy and the sovereignty of the country.

In addition to the NPP, the ULS has also decided to vote against the IMF agreement.  Speaking to The Daily Morning, Sri Lanka Podujana Peramuna “independent” MP Attorney Udaya Prabath Gammanpila yesterday said their decision was caused by many proposals in the IMF agreement that are harmful to Sri Lanka.

“Our opinion is that this Agreement stuck us further in a debt trap. This Agreement has not provided a solution to the problem we are facing. A more holistic approach is needed to solve this problem. But looking at some aspects of this Agreement optimistically, we accept the proposals included here to improve government revenue and to reduce the government expenditures. But the danger that can be brought by this agreement will be more than the handful of things we get back,” Gammanpila said.

When contacted by The Daily Morning yesterday, SLFP General Secretary Attorney Dayasiri Jayasekara said that his party believes that the only solution to get out of the predicament the country has fallen is that getting the support of the IMF and therefore, they decided to support it as they do not want to disrupt that solution. He also noted that a domestic mechanism is needed to find a solution to this crisis rather than relying solely on the IMF facility.

“The Government is trying to get another loan after this IMF facility is over. Because of this, nothing will be appropriate for this crisis, because what is needed is not another loan. We needed a programme to stop borrowing. It should be the Government's job to prepare a programme for that, such as expanding the export and tourism sectors. We hope that the Government will do those things and it is in that hope that we provide support.”

The political party leaders had scheduled a three-day parliamentary debate for the Resolution for the Implementation of the Arrangement under the Extended Fund Facility (EFF) of the International Monetary Fund (IMF) for Sri Lanka into debate. Accordingly, the IMF-supported EFF will be taken up for debate in the parliament from 26-28 April, the Communications Department of the Parliament said in a media release. The decision was reached at the meeting of the Committee on Parliamentary Business convened this morning (20 April). The meeting was chaired by Deputy Speaker of Parliament Ajith Rajapakse. 

The proposal submits that the Ministry of Finance, Economic Stabilisation & National Policies should provide all necessary approvals for the implementation of the said set-up, however, a vote is to be followed post the three-day debate if necessary, the Communications Department said further. On 20 March 2023, the Executive Board of the IMF green-lighted a 48-month extended arrangement under the EFF programme of SDR 2.286 billion (approximately $ 3 billion) for Sri Lanka.