Sri Lanka’s new political leadership is preparing to quickly initiate talks with the International Monetary Fund (IMF) to continue its current financial programme, while also accelerating debt relief discussions with foreign creditors to support the country’s fragile economic recovery, according to Finance Ministry sources.

Recognising the need to advance key economic reforms, an IMF team is scheduled to visit Sri Lanka on Tuesday, Oct. 2, to assess the nation’s economic progress.

According to IMF’s Communications Chief Julie Kozack, the Fund’s third review of Sri Lanka’s $2.9 billion Extended Fund Facility is planned for mid-October, with the precise schedule to be aligned with the newly elected government.

In his first televised address, President Anura Kumara Dissanayake underscored his commitment to promptly resume talks with the IMF, emphasising the importance of these talks for the country’s full recovery from one of its most severe economic crises.

The IMF’s upcoming staff visit will assess Sri Lanka’s progress by October, and it will determine the disbursement of the next financial tranche, expected in November.

Meanwhile, Central Bank Governor Nandalal Weerasinghe disclosed that Sri Lanka’s debt restructuring was nearing completion, with a bond exchange anticipated within six to eight weeks if the government followed the current Debt Sustainability Analysis (DSA).

Although the Central Bank was not involved in the DSA decision-making, the Finance Ministry must decide whether to renegotiate or maintain the current DSA framework, he said.

The remaining steps in the restructuring include finalising agreements with international and local bondholders and the Asian Development Bank (ADB). Once the comparability of debt relief measures such as interest reductions and maturity extensions are evaluated, a bond exchange can proceed within the expected timeframe.

If all conditions are met, the bond exchange will take place within six to eight weeks. Dr. Weerasinghe said that completing the debt restructuring was essential for Sri Lanka’s financial stability. Despite the progress, IMF officials have warned that the country is still in a vulnerable position and that maintaining current gains is crucial for a sustainable recovery.

The hope is that this 17th IMF programme will address the root causes of corruption and poor governance. However, the lack of meaningful progress in these areas suggests the IMF may not be prioritising compliance with governance commitments during the programme’s renewal.

For the first time in Sri Lanka, the government is to establish a mechanism to supervise and advice ministries in the implementation of policies, a source said.

A tense situation was reported at the UNP party headquarters in Sirikotha when a group of UNP supporters arrived to hand over a document on reviving the party.

Samagi Jana Balawegaya (SJB) MP Harsha de Silva said today that an NPP MP has told him that the Parliament canteen will not be closed but the government will see that no one will abuse the facility.

Two fishermen were seriously injured and hospitalised after a parcel floating on the sea exploded while they were checking it off the coast of Mannar.

The Disaster Management Centre (DMC) and the Examinations Department have initiated a joint programme to mitigate potential disasters during the 2024 Advanced Level examinations.

President Anura Kumara Dissanayake addressed the inaugural session of the 10th Parliament of Sri Lanka today. Following are 11 key points from the President’s Government Policy Statement;

Speaker Dr. Ashoka Sapumal Ranwala informed Parliament that nomination of Sajith Premadasa, leader of the Samagi Jana Balawegaya (SJB), has been accepted as the Opposition Leader of the 10th Parliament of Sri Lanka.

Jaffna District Independent MP Archuuna Ramanathan refused to move away after he sat on the Opposition Leader's seat inside the chambers despite requests by Parliament staff to move.

National People's Power (NPP) Gampaha MP Dr. Ashoka Sapumal Ranwala was elected as the Speaker of the 10th Parliament of Sri Lanka a short while ago. Prime Minister Harini Amarasuriya proposed his name, and the nomination was confirmed by Vijitha Herath.

President Anura Kumara Dissanayake adjourned the Sri Lankan Parliament until 9:30 a.m. on December 3. The adjournment followed the President’s delivery of the government’s policy statement during the inaugural session of the 10th Parliament earlier today.