StanChart Sri Lanka CEO Advocates Post-EFF IMF Stand-By Deal 📈

• Proposal for IMF SBA: Standard Chartered Sri Lanka CEO Bingumal Thewarathanthri suggested considering an IMF Stand-By Arrangement (SBA) following the completion of the current Extended Fund Facility (EFF) in 2027. He noted an SBA balances policy flexibility with investor confidence and external market access. • EFF Gains Achieved: The primary fiscal consolidation gains under the EFF include surpassing primary surplus targets to record a 1H Budget surplus, cost-reflective energy pricing, digitized cash transfers, and Central Bank independence. Completing the EFF would mark a major milestone after 17 previously incomplete IMF programs. • Unresolved Economic Issues: Significant challenges remain, including poverty levels hovering near 25%, insufficient support for SMEs, and sluggish foreign direct investment (FDI) inflows relative to Sri Lanka’s potential as an investment destination. • Market & Rating Benefits: Sustained IMF engagement is viewed as essential for maintaining sovereign credit ratings, reassuring global investors, and securing favorable borrowing costs when re-entering international capital markets.