Minister of Trade Bandula Gunawaradena has spoken about financial decisions Sri Lanka might have to take as a country, if it is to go for an International Monetary Fund ( IMF ) bailout.
“Before seeking assistance from the IMF, there are certain things we need to consider. The budget deficit should be kept at 5% within the policy framework.” The minister said.
Gunawadena went on to say that in order to meet these conditions, certain financial decisions have to be made.
“To meet this, we have to limit salaries of state employees as well as pensions. We might have to increase the gas prices. All parties should be allowed to import any goods without any restrictions. The dollar rate should be left to float. We need to find out if the Public will like these things” He further added.
A discussion about the need to go for an IMF bailout has been going around for a while now as Sri Lanka’s foreign reserves fell to a record low of less than US $ 1.5 billion.
Several groups, including opposition politicians have been urging the government to seek assistance from the IMF while the government has been reiterating its stance not to go for an IMF bailout under any circumstances. (NewsWire)
