Opposition Leader Sajith Premadasa today called on the government to immediately begin negotiations for a successor programme with the International Monetary Fund (IMF), warning that Sri Lanka is not on track to meet reserve targets under the current arrangement.
“I am calling on the government today to begin negotiations for a successor IMF programme. Not to renegotiate the existing arrangement, which is proceeding. A successor programme, the arrangement that takes effect when this one ends,” Premadasa said in a statement.
He noted that Sri Lanka currently holds USD 7 billion in gross official reserves, while the IMF’s target for March 2027 stands at USD 14.2 billion. To bridge the gap, the country would need to accumulate USD 600 million in reserves every month for the next twelve months, a pace he said was unrealistic.
Premadasa warned that the rupee has weakened by 14% against the dollar over the past year, while petrol prices have climbed to Rs. 410 per litre, nearing the crisis peak of June 2022. He also highlighted risks to Sri Lanka’s USD 8.1 billion in annual remittances, which depend heavily on Gulf employment amid regional instability caused by the Middle East conflict.
“Sri Lanka is not in a position of strength indefinitely. These are not distant risks,” he cautioned.
Premadasa stressed that Sri Lanka has entered 17 IMF programmes, often only after reserves were depleted and the rupee collapsed, leaving the country with no choice but to accept harsh terms.
“We have a choice right now. The window to negotiate from relative strength with USD 7 billion in reserves, a functioning programme, and demonstrated reform credibility. I am asking this government to plan for March 2027 and explain to the country Sri Lanka’s contingency plan when we fail to meet the IMF target,” he said.
The Opposition Leader stressed that his proposal was not a retreat from fiscal discipline but a call to secure stability beyond the current programme. (Newswire)
