IMF experts’ advice is for routine technical assistance program, Cabraal clarifies

The Central Bank Governor, Ajith Nivard Cabraal today set the record straight on Finance Minister Basil Rajapaksa’s recent comments on seeking experts’ advice from the International Monetary Fund (IMF) on the economic situation of Sri Lanka.

In a tweet, Cabraal clarified that it was about a routine technical assistance program on macro-fiscal capacity building for Finance Ministry’s new Macro-Fiscal Unit.

Finance Minister's comment yesterday (2) re."#SriLanka informing @IMFNews to provide #expert advice on #economic situation" is about a routine Technical Assistance Program on Macro-Fiscal capacity building for MOF's new Macro-Fiscal Unit. Nothing else. @RealBRajapaksa @CBSL #lka

— Ajith Nivard Cabraal (@an_cabraal) February 3, 2022

Speaking to the media yesterday, the finance minister said Sri Lanka has written to the IMF to seek experts’ advice on the current economic situation in the island and that IMF representatives are expected to visit the island soon.

Asked whether the Sri Lankan government is in discussions with the IMF, he said: “That too is a forbidden word. No such thing has been done officially.”

However, he said that they have sought the ‘expert knowledge’ of the IMF, which he said is an institution that exists to advise countries in crisis.

“I can’t say whether we will accept their advice or not, but they will tell us what we don’t know,” he added.

And he signalled that the government could seek a bailout from the Washington-based institution.

“We need to find out what their conditions are,” the lawmaker said further. “Even when we try to get a housing loan, we first find out the conditions of the bank.”