In its end-of-mission statement released yesterday, the IMF asserted the need for a continued focus on anchoring inflation expectations, so that the successful track record achieved by the monetary watchdog so far can be sustained.

The visiting delegation, led by IMF Senior Mission Chief Peter Breuer, pointed out that against continued uncertainty, it remains important for Sri Lanka to continue rebuilding external buffers through strong reserve accumulation.

“Protecting the poor and vulnerable through improved targeting and better coverage of cash transfers remains critical,” Breuer said issuing an update on the progress noted in Sri Lanka under the Extended Fund Facility (EFF) programme.

To safeguard the stability of the financial sector and bolster its capacity to support economic growth, the IMF called on the authorities to “urgently finalise” amendments to the Banking Act, in line with their commitment to the IMF-supported programme, while implementing the bank recapitalisation plan and strengthen the financial supervision and crisis management framework.