In a groundbreaking move towards transparent governance and economic reform, Sri Lanka has achieved a historic milestone by becoming the first country in Asia to undergo the International Monetary Fund (IMF) Governance Diagnostic exercise. This achievement is part of the country’s commitment to comprehensive economic policies and reforms under the 48-month Extended Fund Facility (EFF) Arrangement.
The recent Executive Board discussion on Sri Lanka revealed that the country’s performance under the EFF-supported program has been commendable, with macroeconomic policy reforms beginning to yield positive results. Notably, Sri Lanka’s authorities have published the Governance Diagnostic Report, a significant step in addressing deep-rooted corruption weaknesses.
Mr. Kenji Okamura, Deputy Managing Director, expressed satisfaction with Sri Lanka’s progress, stating, “The publication of a Governance Diagnostic Report, the first in Asia and a structural benchmark under the program, is a commendable first step towards addressing deep-rooted corruption weaknesses.” He emphasized the importance of continued commitment to improving governance and the timely implementation of the report’s recommendations.
The Governance Diagnostic Report is expected to play a crucial role in enhancing transparency, accountability, and overall governance in Sri Lanka. This initiative underscores the government’s dedication to fostering a business-friendly environment, attracting investment, and ensuring economic prosperity for its citizens.
Sri Lanka’s pioneering role in embracing the IMF Governance Diagnostic exercise sets a positive precedent for other nations in the region. The commitment to addressing governance challenges is viewed as a strategic move that can deliver tangible economic gains and further solidify Sri Lanka’s position on the global economic stage.
