Beyond the IMF: The jigsaw Puzzle of a production-based economy
by Prof. Ranjith Bandara, PhD (Qld.) Emeritus Professor of Economics, University of Colombo An International Monetary Fund delegation is currently in Sri Lanka to hold discussions relating to the Seventh Review of the country’s economic reform programme supported by the Extended Fund Facility (EFF). The mission, which runs from 10 to 23 September, is led […]
The International Monetary Fund (IMF) delegation is presently in Sri Lanka to engage in discussions concerning the Seventh Review of the nation's economic reform program, supported by the Extended Fund Facility (EFF). Guided by Evan Papageorgiou, the IMF Mission Chief for Sri Lanka, the mission is scheduled from September 10 to 23.
While successfully concluding this review and continuing the IMF program as originally planned are crucial, it is the university's opinion that Sri Lanka cannot establish a stable economy in the long run solely by adhering to the IMF's prescribed path. While macroeconomic stability is a necessary foundation, it should not be considered the ultimate goal of national development.
Since the economic crisis of 2022, Sri Lanka has demonstrated improved macroeconomic stability. Significant progress has been made in controlling inflation, increasing government income, reinforcing the primary fiscal balance, restoring foreign reserves, and restructuring public debt. However, these achievements are merely the initial steps towards the nation's development success; they are the building blocks upon which the subsequent stage of economic advancement must be constructed.
This article seeks to elucidate why Sri Lanka must move beyond the macroeconomic targets of the IMF program and embark on a broader economic transformation centered around production, exports, and national capabilities.
Written by urgent.news from The Island Sri Lanka's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
