IMF Stresses Need for Trade Liberalisation, Digitisation, Regulatory Streamlining to Unlock Growth in Sri Lanka The International Monetary Fund (IMF) has reiterated its call for Sri Lanka to continue advancing trade liberalisation, digitalisation, regulatory streamlining, and modernisation of the labour market to achieve sustainable and inclusive economic growth. These recommendations were highlighted during a media conference held by the IMF mission team following their latest assessment of the country’s economic situation. IMF Mission Chief for Sri Lanka, Evan Papageorgiou, underscored the importance of these measures in addressing structural challenges and fostering long-term development. Papageorgiou outlined that fiscal discipline remains a critical priority, emphasizing the need to maintain robust revenue collection and prudent government spending. He noted that improving tax compliance, expanding tax incentives, and restoring cross-subsidisation mechanisms for fuel and electricity prices are essential to mitigate fiscal risks. These steps, he argued, must be implemented in a manner that safeguards the interests of vulnerable populations, ensuring that economic reforms do not exacerbate inequality. The IMF official also addressed the government’s ongoing reconstruction efforts, stressing the importance of prioritising projects carefully and executing them transparently in accordance with the Public Financial Management Act. Papageorgiou highlighted that social safety nets must be preserved and strengthened to ensure that support reaches those most in need. He further called for monetary policy to remain data-driven and adaptable to the evolving economic landscape of Sri Lanka. A key focus of the IMF’s recommendations was the preservation of the Central Bank’s independence.#central_bank #sri_lanka #imf #evan_papageorgiou #public_financial_management_act
