The Government has no intention of seeking funds through the International Monetary Fund’s (IMF) Rapid Financing Instrument (RFI), as debt servicing has been effectively managed, State Minister of Capital Markets and State Enterprise Reforms Ajith Nivard Cabraal told Parliament yesterday.
“We have managed the finances effectively and there is no need to seek funds through the IMF’s RFI, as we have passed the emergency period about three months ago. It is only soon after an accident that a patient needs a blood transfusion, not three months later,” Cabraal said.
He was responding to several queries raised by Leader of Opposition Sajith Premadasa on whether the Government intended to seek funds through the RFI and what measures had been taken to improve the country’s ratings which were downgraded by Moody’s Investor Service recently.
State Minister Cabraal said that instead of understanding the economic turnaround as well as awaiting the Budget that was due in November 2020, Moody’s downgrade of Sri Lanka at the beginning of the economic revival was inexplicable, but said the Government would continue to have a dialogue with all rating agencies.
He noted that the Government had begun easing importation restrictions and foreign remittances the country had received during the past few months had been higher than expected. “Sri Lanka has been able to earn a considerable amount of funds through IT services during the past months. Hence the situation is going to be brighter than expected,” he said.
He said that Foreign Direct Investments (FDIs) which slowed in the first half of the year appeared promising looking ahead, particularly with the expected inflows to the Port City project and for new manufacturing projects.
(LIN)