IMF backs Sri Lanka with waiver on data reporting breach considering corrective action and reform commitment

IMF Mission Chief Evan Papageorgiou explains underreporting linked to interest subsidies for senior citizens in 2022 and reporting gaps in line Ministries

- CHARUMINI DE SILVA

• Notes Sri Lanka failed to report arrears correctly for three reviews; works with authorities to verify and fix data issues

• Acknowledges progress made by Sri Lankan authorities in putting a plan to clear these existing arrears

• States Executive Board accepted corrective actions under recommendations of IMF Managing Director

SRI Lanka secured a crucial nod from the International Monetary Fund (IMF) on Tuesday, as its Executive Board approved the authorities' request for a waiver on missed quantitative performance targets linked to Government expenditure arrears, paving the way for continued financial support under the Fund's Extended Fund Facility (EFF).

Speaking to journalists on Thursday, IMF Mission Chief for Sri Lanka Evan Papageorgiou made a detailed explanation of the waiver decision, highlighting both the seriousness of the reporting lapses and the authorities' efforts to rectify them.