A special delegation of the International Monetary Fund visited the northern province today (14.01.2024) and met and had a discussion with the Honorable Governor P.S.M. Charles. The meeting was held at the Northern Province Governor’s Secretariat. The meeting was Organized by the Governor’s Secretariat. Representatives of Jaffna University, business representatives, and representatives of SMEs participated in the meeting.
Representing the International Monetary Fund (IMF), a team led by the Senior Mission Chief, IMF Resident Representative, Senior Economist, Senior Financial Expert, Economist, and Local Economist participated in today’s meeting.
The Honorable Governor of Northern Province briefed the representatives of the International Monetary Fund on issues including development projects, infrastructural facilities, climate change, and problems in providing compensation to flood-affected farmers.
A group of representatives of Jaffna University presented their views on the current economic situation after an easter bomb attack, as the COVID situation, economic crisis, tax increase, and other issues. According to the analysis of these issues, the representatives of the University of Jaffna proposed that the anti-corruption law should be strictly implemented in the country, changes should be made in the distribution policy, and reconciliation activities should be carried out.
Trade representatives and representatives of small industrial entrepreneurs said that the new tax policy is a huge burden on the business activities already affected by the economic crisis. They mentioned that they are facing massive difficulties in carrying out their business activities due to disruptions in getting loans from banks and changes in bank interest rates.
Peter Breuer, the Senior Mission Chief of the International Monetary Fund, said that he has learned that people are facing massive problems because of the tax increase in Sri Lanka. He said that the country has reached such a state because of past economic policies and to change the situation, it is necessary to follow strict policies for a certain period.
However, the Senior Mission Chief IMF said that some positive changes had taken place at the end of last year and these changes should continue.
