• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

EXCLUSIVE: ‘The Man She Is Today’: European Companies Accused Of ‘Importing’ Woke Ideology

May 29, 2025

‘The Economy Is On Fire!’: Kevin O’Leary Drops Fact Check On CNN Panelists Railing Against Trump’s Economy

May 29, 2025

DeSantis Signs Bill Making Gold And Silver Legal Tender

May 28, 2025
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Saturday, May 31
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Security video shows brazen sexual assault of California woman by homeless man

    October 24, 2023

    Woman makes disturbing discovery after her boyfriend chases away home intruder who stabbed him

    October 24, 2023

    Poll finds Americans overwhelmingly support Israel’s war on Hamas, but younger Americans defend Hamas

    October 24, 2023

    Off-duty pilot charged with 83 counts of attempted murder after allegedly trying to shut off engines midflight on Alaska Airlines

    October 23, 2023

    Leaked audio of Shelia Jackson Lee abusively cursing staffer

    October 22, 2023
  • Health

    Disparities In Cataract Care Are A Sorry Sight

    October 16, 2023

    Vaccine Stocks—Including Pfizer, Moderna, BioNTech And Novavax—Slide Amid Plummeting Demand

    October 16, 2023

    Long-term steroid use should be a last resort

    October 16, 2023

    Rite Aid Files For Bankruptcy With More ‘Underperforming Stores’ To Close

    October 16, 2023

    Who’s Still Dying From Complications Related To Covid-19?

    October 16, 2023
  • World

    New York Democrat Dan Goldman Accuses ‘Conservatives in the South’ of Holding Rallies with ‘Swastikas’

    October 13, 2023

    IDF Ret. Major General Describes Rushing to Save Son, Granddaughter During Hamas Invasion

    October 13, 2023

    Black Lives Matter Group Deletes Tweet Showing Support for Hamas 

    October 13, 2023

    AOC Denounces NYC Rally Cheering Hamas Terrorism: ‘Unacceptable’

    October 13, 2023

    L.A. Prosecutors Call Out Soros-Backed Gascón for Silence on Israel

    October 13, 2023
  • Business

    EXCLUSIVE: ‘The Man She Is Today’: European Companies Accused Of ‘Importing’ Woke Ideology

    May 29, 2025

    ‘The Economy Is On Fire!’: Kevin O’Leary Drops Fact Check On CNN Panelists Railing Against Trump’s Economy

    May 29, 2025

    DeSantis Signs Bill Making Gold And Silver Legal Tender

    May 28, 2025

    John Deere Announces $20 Billion Plan To Build Up American Manufacturing

    May 28, 2025

    EV Startup Promised To Cut China Ties — Then Reportedly Shared US Data Anyway

    May 27, 2025
  • Finance

    Ending China’s De Minimis Exception Brings 3 Benefits for Americans

    April 17, 2025

    The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

    April 17, 2025

    Tariff Talks an Opportunity to Reinvigorate the Japan-US Alliance

    April 17, 2025

    How China’s Companies Are Responding to the US Trade War

    April 16, 2025

    The US Flip-flop Over H20 Chip Restrictions 

    April 16, 2025
  • Tech

    Cruz Confronts Zuckerberg on Pointless Warning for Child Porn Searches

    February 2, 2024

    FTX Abandons Plans to Relaunch Crypto Exchange, Commits to Full Repayment of Customers and Creditors

    February 2, 2024

    Elon Musk Proposes Tesla Reincorporates in Texas After Delaware Judge Voids Pay Package

    February 2, 2024

    Tesla’s Elon Musk Tops Disney’s Bob Iger as Most Overrated Chief Executive

    February 2, 2024

    Mark Zuckerberg’s Wealth Grew $84 Billion in 2023 as Pedophiles Target Children on Facebook, Instagram

    February 2, 2024
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»Finance»IMF’s Package to Sri Lanka Includes Corruption Fixing
Finance

IMF’s Package to Sri Lanka Includes Corruption Fixing

March 30, 2023No Comments6 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
IMF’s Package to Sri Lanka Includes Corruption Fixing
Share
Facebook Twitter LinkedIn Pinterest Email
Advertisement

On March 20, the International Monetary Fund (IMF) extended a $2.9 billion Extended Fund Facility (EFF) to support Sri Lanka.

The approval is expected to pave the way for other financial institutions to extend support to the bankrupt South Asian country.

An important issue that IMF officials flagged at the time of announcing the EFF support to Sri Lanka was government corruption. The IMF would assess corruption and provide recommendations. Sri Lanka has become the first Asian country to be subjected to a comprehensive governance diagnostic exercise.

According to those who support the deal and the path set by the IMF, this exercise is supposed to be a valuable tool in improving the country’s governance and economic systems. However, critics, including human rights organizations and left-leaning political parties, express skepticism and contend that these measures are designed to justify and legitimize the implementation of austerity policies.

Sri Lanka has been in discussions with the IMF since early 2022, following the worst economic crisis it has been facing since its independence, and had embarked on a number of reforms following IMF recommendations.

Enjoying this article? Click here to subscribe for full access. Just $5 a month.

This is not the first time Sri Lanka had sought IMF assistance. It received IMF funding four times between 1965 and 1969, twice between 1971 and 1974, four times between 1977 and 1988, once in 1991, four times between 2001 and 2009, and finally in 2016.

However, Sri Lanka has not previously faced an economic disaster of this magnitude, nor has it been subjected to such stringent conditions as those imposed in the current IMF deal.

On the day after the deal was announced, President Ranil Wickremesinghe told Parliament that Sri Lanka is no longer a bankrupt nation and that they have received the first tranche of the funds, $333 million. Wickremesinghe insisted that they expect to access another $7 billion of “rapid credit support” from several multilateral sources including the World Bank, and the Asian Development Bank. Another $7 billion will take Sri Lanka’s foreign debt to $62 billion.

See also  China-Russia Energy Ties Feature in the Xi-Putin Lunar New Year Call 
Advertisement

The president also insisted that the IMF funding sends the world a signal that Sri Lanka is going forth with a plan for economic recovery and gives Sri Lankan banks the access to international financial institutions. In his speech, Wickremesinghe also said that significant changes would be made in the way the nation is governed, its fiscal and monetary policy, tax regime, corruption mechanisms, etc.

As the president told Parliament, the IMF money came with a number of conditions.  At the press conference announcing the deal, Breuer said that the IMF has emphasized that anti-corruption and governance reforms are central pillars of the program. He added that the IMF will subject Sri Lanka to a comprehensive governance diagnostic exercise, making it the first Asian economy to undergo such an exercise.

What is a governance diagnostic exercise?

Delivering the opening remarks for the press briefing on the IMF Executive Board Approval of the Extended Fund Facility (EFF) Arrangement for Sri Lanka, IMF representatives said that it is “indispensable to ensure the hard-won gains from the reforms benefit the Sri Lankan people” and that the government has agreed to “fundamentally improve public financial management and strengthen the anti-corruption legal framework in line with the United Nations Convention against Corruption.”

“In addition, the IMF is conducting an in-depth governance diagnostic exercise, which will assess corruption and governance vulnerabilities in Sri Lanka and provide prioritized and sequenced recommendations. Sri Lanka will be the first country in Asia to undergo a governance diagnostic exercise by the IMF. We look forward to further engagement and collaboration with stakeholders and civil society organizations on this critical reform area,” IMF officials said.

See also  Can Afghanistan’s Economy Survive Without Aid?

The IMF in recent years has done such governance diagnostic exercises in Moldova, the Republic of Congo, Mauritania and Zambia. The reports on Moldova, Republic of Congo and Zambia are online and one on Mauritania should be released soon.

The IMF considers that these assessments are tools that countries can use to establish effective governance arrangements and enhance the rule of law. In all three countries the IMF teams looked at the governance of the central bank, the financial sector, the fiscal sector, the protection of contract and property rights, the tax regime and anti-money laundering. Given what both the IMF and the president have spoken, it is quite clear that the exercise on Sri Lanka would look at the same things.

Enjoying this article? Click here to subscribe for full access. Just $5 a month.

The IMF states that “When a country borrows from the IMF, the government agrees to adjust its economic policies to overcome the problems that led it to seek financial assistance. These policy adjustments are conditions for IMF loans and help to ensure that the country adopts strong and effective policies.”

The organization insists that these conditions help countries to solve balance of payments issues “without resorting to measures that harm national or international prosperity.”

There is a growing body of evidence suggesting that the implementation of reforms attached to IMF loans often leads to an increase in labor rights violations, domestic violence, and repression. It is particularly pertinent to note that the Sri Lankan government is currently undertaking measures to fully implement the IMF reforms, which has resulted in the approval for the sale of several State Owned Enterprises that are profitable. This decision is based on the premise that the state should not be involved in business. However, this has led to a number of trade unions commencing strikes, which in turn has prompted the deployment of military forces to quell industrial action. These developments are a cause for concern, particularly with regard to their potential implications for human rights and labor standards in Sri Lanka.

See also  Disney's $60 Billion Theme Park Expansion Includes More Investment in Florida Despite Fight with DeSantis
Advertisement

Commenting on the IMF agreement, Amnesty International Senior Director Deprose Muchena, who is currently in Sri Lanka to launch its 2023 report on human rights, said that IMF recommendations have often led to a decline in the welfare of the people.

Muchena told The Diplomat said he is not aware of details of IMF governance diagnostic exercise in Sri Lanka but will meet IMF representatives within the week to gather information on the agreement.

The IMF usually places restrictions on fiscal and monetary policy of a government, and these often prevent governments from making necessary steps to finance welfare, he said.

“In 2022, there were massive protests in Sri Lanka. There was a call for transparency, good governance and human rights and these demands must be respected. Any agreement with the IMF must not violate the rights of the people,” he said.

Corruption Fixing IMFs Includes Lanka Package Sri
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Ending China’s De Minimis Exception Brings 3 Benefits for Americans

April 17, 2025

The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

April 17, 2025

Tariff Talks an Opportunity to Reinvigorate the Japan-US Alliance

April 17, 2025

How China’s Companies Are Responding to the US Trade War

April 16, 2025
Add A Comment

Leave A Reply Cancel Reply

Top Posts

Elon Musk Meets with Senate Leadership to Discuss AI Regulation

April 29, 2023

Trump Pans DeSantis At GOP Dinner And His Florida Audience Barely Makes A Peep

April 23, 2023

Kash Patel and Steve Bannon Discuss the Real Reason the Biden Regime and Israel Missed the Hamas Sabbath Attack – Includes Kash Patel’s Guest Post on Gateway Pundit | The Gateway Pundit

October 9, 2023

Morning Bid: China to cut rates, but will it ‘go big’?

August 21, 2023
Don't Miss

EXCLUSIVE: ‘The Man She Is Today’: European Companies Accused Of ‘Importing’ Woke Ideology

Business May 29, 2025

Consumers’ Research issued a “Woke Alert” on Thursday warning American shoppers that three European companies…

‘The Economy Is On Fire!’: Kevin O’Leary Drops Fact Check On CNN Panelists Railing Against Trump’s Economy

May 29, 2025

DeSantis Signs Bill Making Gold And Silver Legal Tender

May 28, 2025

John Deere Announces $20 Billion Plan To Build Up American Manufacturing

May 28, 2025
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,136)
  • Entertainment (4,220)
  • Finance (3,202)
  • Health (1,938)
  • Lifestyle (1,645)
  • Politics (3,084)
  • Sports (4,036)
  • Tech (2,006)
  • Uncategorized (4)
  • World (3,944)
Our Picks

The Jack Smith Grand Jury Is Back And 2 Questions Could Determine Trump’s Fate

June 4, 2023

Intel to drop $5.4 billion Tower deal after China review delay -sources

August 16, 2023

Joe Biden Can Barely Walk – Shuffles Through the Sand on Delaware Beach and No One Cares – While Trump Lights Up Las Vegas (VIDEO) | The Gateway Pundit | by Jim Hoft

July 9, 2023
Popular Posts

EXCLUSIVE: ‘The Man She Is Today’: European Companies Accused Of ‘Importing’ Woke Ideology

May 29, 2025

‘The Economy Is On Fire!’: Kevin O’Leary Drops Fact Check On CNN Panelists Railing Against Trump’s Economy

May 29, 2025

DeSantis Signs Bill Making Gold And Silver Legal Tender

May 28, 2025
© 2025 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.