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Sri Lanka has become the first Asian country to publish its Growth Diagnostic Framework (GDF), a major development in addressing its economic challenges and promoting sustainable growth. Developed with the IMF, the GDF provides a detailed tool for analyzing economic constraints, helping the government prioritize policies to remove these barriers and stimulate growth.
Joel Turkewitz from the IMF's Legal Department highlighted the importance of rule-based appointments in the Anti-Corruption Commission as a key aspect of the framework. This was discussed in an episode of Advocata Studio featuring Advocata Chair Murtaza Jafferjee and IMF representatives Peter Breuer and Joel Turkewitz.
The conversation focused on Sri Lanka's proactive use of IMF expertise to identify and tackle critical economic issues. Peter Breuer, IMF Senior Mission Chief for Sri Lanka, expressed optimism about the country's commitment to reforms, emphasizing the importance of enforcement mechanisms and the selection process for anti-corruption commissioners.
Sri Lanka's economy, plagued by high debt, inflation, and political instability, could benefit significantly from the GDF. Jafferjee urged stakeholders to engage with the framework, which will be translated into Sinhala and Tamil. He also expressed concerns about recent tax breaks awarded by the government while engaging with the IMF.
The publication of the GDF is seen as a critical step for Sri Lanka, especially in the post-pandemic economic environment, offering a structured approach for policy decisions, attracting foreign investment, and enhancing economic stability.
IMF representatives reaffirmed their support for Sri Lanka in implementing the framework, marking a new chapter in Sri Lanka-IMF relations aimed at improving the country's economic governance. Breuer specifically noted the importance of governance and efficient management in public banks, stating that more efficient financial intermediation could lower capital costs, thus contributing to growth and stable, inclusive economic development.
