Sri Lanka Finance Minister off for IMF/World Bank sessions, Japan

EC0NOMYNEXT – Sri Lanka’s Finance Minister Ravi Karunanayake, Central Bank Governor Arjuna Mahendran and Treasury Secretary R H S Samaratunga has left to attend annual sessions of the World Bank and International Monetary Fund.

The Finance Ministry said this year’s sessions would be held in Lima, Peru from October 09 to 11.

Karunayake will hold talks with World Bank and International Monetary Fund on aid the statement said.

He will also visit Japan where Prime Minister Ranil Wickremesinghe on a tour.

Sri Lanka is currently facing a balance of payments crisis after state salaries were hike and debt is being monetized to finance the budget deficit.

In September an attempt was made to float the rupee without a rate hike and now some administrative measures including import restrictions have been imposed.

Analysts have called for reform or abolition on Sri Lanka’s soft-pegged central bank which follows contradictory monetary and exchange rate policy (trying to target the exchange rate and interest rates simultaneously) generating frequent balance of payments crisis.

 

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