Government and IMF to keep economy on track
[August 17, 2001 - 13:30 GMT]

The IMF has recommended stringent expenditure controls and improved tax administration for meeting revenue targets, the IMF delegation from Washington that was in Sri Lanka over a week, said in a communiqué issued yesterday.

“The Central bank of Sri Lanka (CBSL) has balanced the need to stabilise the economy and the concerns of the business environment. CBSL has, therefore, reduced appropriately the repo and reverse repo rates in order to mitigate the adverse effects of high real interest rates on the economy. Nevertheless, the CBSL will need to retain this balanced approach for the remainder of the year, reflecting also possible inflationary pressures,” the communiqué further said.

On foreign exchange regulations, the delegation welcomed the removal of the deposit requirement on new forward contracts by the CBSL, and looks forward to the removal of remaining guidelines. 

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Last Updated Date: December 16, 2003 - 13.30 GMT.