Sri Lanka, Oct. 16 -- There is an uncomfortable question Sri Lanka must confront as the Government considers its economic future beyond the current International Monetary Fund (IMF) programme. If the country has restored macroeconomic stability after its worst economic crisis in decades, why does it still need to look to another programme to sustain its recovery?
The question is not whether Sri Lanka should continue working with the IMF. Given its debt obligations, limited room for fiscal manoeuvre and exposure to external shocks, continued engagement with the Fund is prudent. Nor can the Government be expected to dismantle overnight economic problems accumulated over decades. The issue is whether the country has moved sufficiently far fro...