Discussions between Sri Lanka and the International Monetary Fund (IMF) on the Fourth Review of the US$ 2.9 billion Extended Fund Facility (EFF) program, have commenced in Washington, DC.
Sri Lanka will be represented at the talks by senior officials from the Ministry of Finance and the Central Bank of Sri Lanka (CBSL), said Deputy Finance Minister Prof. Anil Jayantha Fernando.
This follows a working visit to Sri Lanka by an IMF team led by senior official Evan Papageorgiou from April 3 to 11. Papageorgiou said the IMF staff team had very productive discussions with the Sri Lankan leaders and monetary authorities on economic performance and policies underpinning the Fourth Review under the IMF’s EFF arrangement.
In a clear reference to the tariffs imposed by the United States (which were later paused for 90 days), he said, “The recent external shock and evolving developments are creating uncertainty for the Sri Lanka’s economy, which is still recovering from its own economic crisis. More time is needed to assess the impact of the global shock and how its implications for Sri Lanka can be addressed within the contours of its IMF-supported program”.
“Discussions are continuing with the goal of reaching a Staff Level Agreement (SLA) in the near term to pave the way for the timely completion of the Fourth Review. We reaffirm our commitment to support Sri Lanka at this uncertain time,” he said.
Meanwhile, the Sri Lankan delegation will also hold separate talks with the US Trade Representative (USTR) officials on the imposition of Reciprocal Tariffs by the US on April 22. While the 44 percent tariff on Sri Lanka is subject to the 90-day pause, the baseline 10 percent tariff imposed on all countries including Sri Lanka remains in place.
The talks will also focus on investment and trade relations with the US, one of Sri Lanka’s leading trade partners. Sri Lanka exports goods worth over US$ 3 billion to the US every year.
