COLOMBO: Sri Lanka is continuing talks over reaching a staff level agreement with the International Monetary Fund for the next phase, officials said. Treasury Secretary R H S Samarathunga said an IMF team was in Colombo for talks. The December 2016 review of the programme, which began in mid-2016, was stalled after the December review was not completed. There were expectations that a staff level agreement would be concluded in April, with talks continuing in Washington. Finance Minister Ravi Karunanayake said he was confident that the review would be completed and the next tranche would be released in June.
The IMF gives ‘small change’, but endorsed the country’s fiscal consolidation. Although there were some difference of opinion, he said both sides are expected to meet halfway. Sri Lanka had to complete some income tax legislation. Sri Lanka could also not meet the reserve target.
