Premadasa calls for new IMF programme focused on living standards

Opposition Leader Sajith Premadasa has called for a new programme with the International Monetary Fund after Sri Lanka completes its current Extended Fund Facility arrangement, arguing that the country’s economic recovery will remain incomplete.

Premadasa said Minister Bimal Ratnayake had recently indicated that Sri Lanka would exit the four-year IMF programme by March next year.

However, he said completing the programme should not be mistaken for completing the country’s economic recovery.

Sri Lanka’s current 48-month IMF Extended Fund Facility, approved in March 2023, is aimed at restoring macroeconomic stability, debt sustainability and financial-sector resilience. The IMF said this week that the economy continued to show resilience but that risks remained tilted to the downside.

Premadasa said both previous and current administrations had repeatedly pointed to financial stability, while many households continued to face pressure from inflation and the cost of living.

He said policymakers needed to look beyond headline economic indicators and pay greater attention to the impact of the recovery on ordinary people.

Premadasa also said Sri Lanka remained vulnerable to external shocks, including international military conflicts and extreme weather events, and needed an economy capable of withstanding such pressures.

“I believe Sri Lanka needs a new programme with the IMF that addresses the concerns of ordinary people and improves their livelihoods,” he said.

The IMF has stressed that continued reforms, prudent policies, stronger revenue administration and measures to safeguard macroeconomic stability will remain important beyond the current programme.