Reforms Take Top Slot

Dilshan Wirasekara, Chief Executive Officer of First Capital Treasuries PLC

Financial and public sector reforms are high on the list of the upcoming IMF backed structural adjustment program in March.rn

rnIMF resident representative Jeremy Carter says Sri Lanka has to trim its bloated public sector, which is the largest in the world in per capita terms.rn

rnSri Lanka is likely to get about sixty five per cent of her SDR allocation which is about US$ 400 mn under the low interest Poverty Reduction and Growth facility.rn

rnIMF says it is encouraged by the start in reforms made by the government so far.rn

rnThe money will go to Central Bank to boost reserves and prepare the country for possible future shocks.rn

rnIt will also serve as a buffer for any imports that may follow a take-off in the economy, though the government itself cannot use the money directly.rn

rnThe signing in mid march will be accompanied by a similar agreement with World Bank and the ADB.rn

rnThey will bring in actual budgetary support in the form of project loans for capital expenditure as well carrot-