The International Monetary Fund’s (IMF) corruption-busting governance diagnostic report compiled by the recently concluded IMF mission has made 16 Priority Recommendations for Sri Lanka to improve the island nation’s governance system, IMF sources divulged.
Sri Lanka is the first country in Asia to undergo an IMF governance diagnostic under the global lender’s key structural reform to address corruption vulnerabilities and enhance growth.
The Sri Lanka Governance Diagnostic Assessment September 2023 by the IMF mission has revealed that social tensions remain high in the island nation due to falling real incomes.
This is despite tentative signs of macroeconomic stabilization with inflation moderating, exchange rate stabilizing, and the Central Bank of Sri Lanka (CBSL) rebuilding reserves buffers.
It adds that the government measures to address the balance of payment crisis, including tax reforms and cost-recovery pricing in the energy sector, have raised the cost of living.