International Monetary Fund. Asia and Pacific Dept
1. We thank the mission team led by Mr. Nozaki for the frank discussions held in Colombo in December 2021 with our SriLankanauthorities. Our authorities look forward to continuing the engagement with the Fund and appreciate the commitment of the management and staff to maintain this relationship. While the high risks facing the Sri Lankan economy at present are well recognized, our authorities are of the view that some of these risks are exaggerated in the staff assessment and the efforts of the authorities to address these challenges are understated, as
This paper evaluates Sri Lanka’s Request for Emergency Assistance. The Sri Lankan authorities have requested a purchase in an amount of SDR 103.35 million under the IMF’s policy for emergency assistance related to natural disasters. In line with IMF policy for Poverty Reduction and Growth Facility (PRGF)-eligible countries, they have also requested the provision of subsidies to reduce the rate of charge to concessional terms. Reconstruction and rehabilitation will support growth momentum in 2005.
This paper examines Sri Lanka’s Request for Extension of Repurchase Expectations. The Sri Lankan authorities request an extension of repurchase expectations arising in the remainder of 2005, in the amount of SDR 74,162,500. The extension would have the effect of moving the repurchase expectations to an obligations basis, with each amount falling due exactly one year after the expectation date. The authorities have also expressed their desire to resume discussions on the Poverty Reduction and Growth Facility (PRGF)/EFF-supported program.
on a sound financial footing.
“The ongoing FSAP update is assessing potential vulnerabilities in the financial sector. The authorities should remain vigilant for systemic risks, and recommendations in the update can be used to strengthen the financial system further.
“The SriLankanauthorities have undertaken substantial macroeconomic policy adjustments to stabilize reserves. It will be important to continue macroeconomic stabilization and structural reforms efforts, in particular maintaining exchange rate flexibility while building international reserves