IMF commitments

As of June 2023, Sri Lanka has successfully fulfilled 33 of the trackable commitments under the International Monetary Fund (IMF) programme, according to the 'IMF Tracker,' an online tool by Verité Research, a think tank. However, the country has failed to meet eight commitments.

 

 

Unfulfilled commitments doubled from four in May to eight in June 2023. These include obtaining cabinet approval for the restructuring plan of State-Owned Enterprises (SOEs), passing new anti-corruption legislation, publishing the 2022 annual reports of major SOEs, and gradually creating a plan to eliminate import restrictions.

 

 

Sri Lanka's significant areas for improvement are in the passage of legislation and information dissemination. The country has committed to enacting essential laws, but the drafts are still awaiting parliamentary approval and enactment. Key commitments still need to be fulfilled on the information dissemination front, such as establishing a fiscal transparency platform and publishing various lists related to public procurement contracts and tax exemptions.

 

 

Furthermore, the publication of annual reports for significant SOEs up to 2022 has been limited, with only 11 out of 52 SOEs having published their reports. The lack of information extends to the non-publication of a plan to phase out import restrictions.

 

 

The 'unknown' category of commitments, where information for assessment is unavailable, has increased to 14% as of the end of June, more than double the previous month's percentage (6%).

 

 

Verité Research emphasizes that timely progress on the IMF programme can yield material benefits and improve confidence in Sri Lanka's governance. This could aid negotiations to restructure past debt burdens and accelerate economic recovery in the future.