Former Governor of the Central Bank of Sri Lanka (CB) Dr. Indrajit Coomaraswamy stressed the importance of continued commitment to implementing the IMF reform package under the Extended Fund Facility (EFF), of which two reviews have been completed.
He said that the slogan for the next new government should be “consensus and consistency’’ in implementing the economic policy reform framework that has been agreed to achieve economic growth targets and stability.
He was speaking at the Pathfinder Foundation (PF) and the Institute of South Asian Studies (ISAS) jointly hosted a comprehensive webinar focusing on the domestic politics of South Asia, with a special emphasis on Sri Lanka, at the National University of Singapore.
The webinar, held at the River Point, HeadQuarters of the PF brought together leading experts to explore the socio-economic and political challenges faced by Sri Lanka as the nation approaches the presidential election on September 21.
He highlighted that in terms of macroeconomic management, there has been an impressive turnaround in the economy.
These include economic growth turning into positive after six quarters of consecutive negative contraction, dramatic reduction in both inflation and interest rates, healthy performance in government revenue collection and impressive build-up of external foreign reserve, which was precariously low at US$ 20 million at the time of the crisis has now reached US$ 5.6 billion.
He underscored the importance of addressing corruption vulnerabilities as well.
Dr. Rajni Gamage, Research Fellow at ISAS, emphasized the importance of the election, the first since the severe economic crisis, noting that it is being held under intense public scrutiny.
Dr. Paikiasothy Saravanamuttu, Executive Director of the Centre for Policy Alternatives, highlighted the potential backlash political parties may face if they fail to deliver their promises.
Dr. Saravanamuttu emphasised the necessity of strong and decisive leadership to navigate the complexities of the current political environment, warning that the stakes are higher than ever in the upcoming elections.
The presidential election is poised to be a pivotal moment for Sri Lanka, marking the first major political event after the country’s economic crisis.
Many highlighted during the webinar that the next government will face the dual challenges of firm commitment to growth-enhancing economic reforms while ensuring a delicate balance to manage geopolitical pressures.
– SS
