Meeting with IMF Delegation

An in-depth discussion was held with IMF representatives on SVAT abolition and MSME asset auctions. Opposition Leader Sajith Premadasa Highlights Critical Issues to IMF Delegation

Opposition Leader Sajith Premadasa stated that the removal of the Simplified VAT (S VAT) facility, which came into effect from October 1st, has caused significant harm to Sri Lankan exporters. He emphasized the urgent need to immediately halt the removal of the S VAT facility and take corrective measures, noting that this would be a favorable move for the country’s export sector. He further pointed out to IMF representatives that no alternative mechanism has been introduced by the government to replace the S VAT facility after its removal.

A Sustainable Program to Eradicate Poverty Is Essential

Hon. Premadasa also highlighted that the current poverty in Sri Lanka cannot be resolved through temporary measures. While the Aswesuma program may have strengthened consumption, it does not adequately address investment, savings, production, and exports. He cited research indicating that 50% of the population is now living in poverty, and stressed to the IMF delegation the urgent need for a sustainable and focused poverty eradication program. Protecting SMEs from Unfair Burdens of Parate Law He further pointed out that Small and Medium Enterprises (SMEs), which contribute significantly to the economy and employment, are facing severe injustice due to the implementation of the Parate Law. Although the law has been suspended on several occasions, complementary measures such as debt restructuring and interest waivers have not been implemented, leaving SMEs vulnerable. This concern was also conveyed to the IMF representatives.

A Call for a More Inclusive IMF Program

Hon. Premadasa concluded by stating that, through these various issues, it is evident that Sri Lankan citizens are facing numerous social challenges under the current IMF program, and there is a pressing need for a more inclusive and supportive IMF framework that provides relief and strength to the people.

The meeting was attended by Mr. Evan Papageorgiou (IMF Mission Chief) and Ms. Martha Woldemichael (IMF Resident Representative) representing the IMF, and from the opposition, Hon. Dr. Harsha de Silva, Hon. Kabir Hashim, Hon. Eran Wickramaratne, Hon. Rishad Bathiudeen, Hon. Rauff Hakeem, Hon. Harshana Rajakaruna, and Hon. S. M. Marikkar."