No-IMF path would have been 'twice as painful' for Sri Lanka, says Dr. Ahluwalia

In a compelling address that offered a fresh perspective on Sri Lanka's ongoing economic recovery, eminent Indian economist Dr. Montek Singh Ahluwalia argued that the alternative to the International Monetary Fund (IMF) programme would have demanded reforms 'twice as painful' for the Sri Lankan people.

- BY SANATH NANAYAKKARE

Dr. Ahluwalia, a key architect of India's economic liberalisation, was delivering the keynote speech at a public forum organised by the Central Bank of Sri Lanka on October 10.

His remarks provided a powerful counter-narrative to the prevalent criticism that the IMF's conditions are the primary source of public hardship.

He explained that had Sri Lanka opted to forgo an agreement with the IMF, the country would have faced the monumental task of creating its own economic programme to restore international confidence.

"To be credible, such a homegrown plan would have necessitated even more severe and drastic policy measures than those currently being implemented under the IMF's Extended Fund Facility (EFF)," he said.