Investor Presentaiton
Sri Lanka has pledged to undertake further ambitious reforms as part of its IMF program
Building on its recent achievements, the country envisages further extensive reforms¹ to extend the currently improving economic
performance and secure long-term recovery
Q3 and Q4-2023
• Revamping the VAT system by removing almost all product specific VAT exemptions
• Submitting the Public Financial Management (PFM) Law to Parliament
• Parliamentary approval for the full revision of the Banking Act
Beginning of IMF
Program
1st IMF review (Sept. 2023)²
2nd IMF review (Mar. 2024)²
3rd IMF review (Sept. 2024)²
4th IMF review (Mar. 2025)²
Q2-2023
• Parliamentary approval of welfare benefit payment scheme (Enhanced
Social Safety Nets)
• Cabinet approval of a comprehensive strategy to restructure the balance
sheets of key SOEs
• Parliamentary approval of new anti-corruption legislation
• Parliamentary approval of the new Central Banking Act
2024
• Introduction of reforms making the Minister of Power and
Energy responsible for implementing cost-recovery based
fuel and electricity price adjustments
• Introduction of a property tax, a gift and an inheritance tax
Other key policy commitments
Improving efficiency of public investments, optimizing capital expenditure, improving borrowing of SOEs,
increasing accounts transparency of SOES, liberalising trade regime, simplifying investment regime
Sources: Ministry of Finance, Economic Stabilization and National Policies, Central Bank of Sri Lanka
Note: (1) The reforms presented are selective; a complete list of the authorities' committed reforms can be found in the IMF staff report, (2) The IMF
program timeline is tentative and reviews are subject to assessment of debt restructuring progress, which should be completed by the first review
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