Narrow Your Choices

Refine By Topic

Refine By Series

Refine By Language

Refine By Date

—

Refine By IMF Taxonomy

Refine By JEL Taxonomy

Refine by LOC Taxonomy

Refine By THEMA Taxonomy

  • Print
  • Save

Asia and Pacific > Sri Lanka

You are looking at 1 - 10 of 310 items for

  • Type: Journal Issue x
Clear All Modify Search
Cover IMF Staff Country Reports
Sri Lanka: First Review Under the Extended Arrangement Under the Extended Fund Facility, Requests for a Waiver of Nonobservance of Performance Criterion, Modification of Performance Criteria, Rephasing of Access, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Sri Lanka
International Monetary Fund. Asia and Pacific Dept
As part of the IMF-supported arrangement Sri Lanka has undertaken significant reforms to pave the way out of a deep economic and debt crisis. The economy is showing tentative signs of stabilization, supported by rapid disinflation and a significant fiscal adjustment. Tax revenues have increased but not as much as initially projected, and reserves accumulation has slowed, including due to slow progress on debt restructuring. Continued ownership of reforms is essential to rebuild fiscal credibility and to improve governance and reduce corruption vulnerabilities. The authorities reached agreements in principle (AIPs) with official creditors on debt treatments consistent with program parameters and are in good faith discussions with their private creditors.
Keywords:
Sri Lankan authorities; arrangement Sri Lanka; authorities' effort; revenue administration reform; IMF staff estimate; headline inflation; invitation of the authorities; Sri Lanka rupee; Credit; Debt restructuring; Global; Asia and Pacific; Middle East; South Asia
Cover IMF Working Papers
Social Unrests and Fuel Prices: The Role of Macroeconomic, Social and Institutional Factors
Alassane Drabo, Kodjovi M. Eklou, Patrick A. Imam, and Mr. Kangni R Kpodar
This paper investigates the impact of fuel price increases on social unrests in addition to the macroeconomic, social and institutional factors driving this relationship. Using the IV fixed-effect estimator on a sample of 101 developing countries during 2001-2020, we find that changes in fuel prices are positively associated with the number of social unrests, mainly anti-government demonstrations. This impact is however amplified: (i) during economic downturns and periods of high exchange rate instability; (ii) when government spending is low, especially on health and education, thus suggesting that streamlining fuel subsides and diverting parts of the reform savings to the health and education sectors is an appropriate policy that could appease social tensions; (iii) in countries with high income inequality, low institutional quality and high level of corruption. The results are robust to a battery of tests, including the use of an instrumental variable approach to address reverse causality concerns given that social unrests could also prompt a freeze in fuel prices. We also find consistent results using either changes in diesel or gasoline prices. Overall, the findings of the paper provide support to the grievance and deprivation theory in explaining the association between fuel price increases and social unrests, but fail to find evidence for the resource theory and the theory of political opportunities.
Keywords:
Retail fuel prices; Social unrests; Public spending; Institutions; baseline result; stage regression; transmission of fuel price; changes in fuel price; fuel riot; Gov. effectiveness WGI; Fuel prices; Inflation; Energy subsidies; Oil prices; Global; Middle East; Caribbean; Europe; Africa
Cover IMF Staff Country Reports
Sri Lanka: Technical Assistance Report-Governance Diagnostic Assessment
International Monetary Fund. Legal Dept., International Monetary Fund. Fiscal Affairs Dept., International Monetary Fund. Monetary and Capital Markets Department, and International Monetary Fund. Finance Dept.
At the request of the authorities of Sri Lanka, an interdepartmental (LEG/FAD/MCM, FIN) Governance Diagnostic Assessment (GDA) mission was conducted during March 20 - March 31, 2023. In line with the IMF’s 2018 Framework on Enhanced Fund Engagement on Governance, the diagnostic assessment focused on corruption vulnerabilities and governance weaknesses linked to corruption in macroeconomically critical priority areas of: (i) the anti-corruption, anti-money laundering and combating the financing of terrorism; (ii) fiscal governance (e.g., public financial management, tax policy and revenue administration, state enterprise management, and public procurement); (iii) central bank governance; (iv) financial sector oversight; and (v) enforcement of contract and protection of property rights. Annex 1 provides additional information on the methodology and scope of the Governance Diagnostic.
Keywords:
governance weakness; revenue administration recommendation; governance arrangement; governance concern; governance dynamics; Corruption; Revenue administration transparency and accountability; Budget planning and preparation; Auditing; Global; Asia and Pacific
Cover IMF Working Papers
Reported Social Unrest Index: August 2023 Update
Mr. Philip Barrett and Euihyun Bae
This paper is the second update of the Reported Social Unrest Index (Barrett et al. 2022), outlining developments in global social unrest since March 2022. It shows that the fraction of countries experiencing major social unrest events has been stable. Reasons for social unrest can be broadly categorized as stemming from sdebate over constitutional issues, protests connected to specific policies, and other generalized disorder.
Keywords:
attempts to proxy; fraction of country; copyright page; update of the Reported Social Unrest Index; IMF surveillance; Pension spending; Machine learning; Pension reform; Stock markets; COVID-19; Global
Cover IMF Staff Country Reports
Sierra Leone: Sixth and Seventh Reviews Under the Extended Credit Facility, Requests for Waivers of Nonobservance of Performance Criteria, Extension of the Arrangement, Rephasing of Disbursements, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Sierra Leone
International Monetary Fund. African Dept.
This paper presents Sierra Leone’s Sixth and Seventh Reviews under the Extended Credit Facility (ECF), Requests for Waivers of Nonobservance of Performance Criteria, Extension of the Arrangement, Rephasing of Disbursements, and Financing Assurances Review. The IMF Executive Board completed the sixth and seventh reviews under the ECF Arrangement for Sierra Leone, which allows for an immediate disbursement of funds. Sierra Leone’s economic challenges have intensified. Inflation has continued to rise; the currency has depreciated sharply; and debt related risks have increased. The authorities have requested an extension of the program to November 2023 to continue building on recent reforms and achieve program objectives. Building resilience and laying the foundations for stronger growth by consolidating public finances and addressing debt vulnerabilities, while supporting the most vulnerable, remains key to the success of the program. Structural reforms will be essential to reduce vulnerabilities to corruption and foster private sector development.
Keywords:
Sierra Leonean authorities; inflation-depreciation spiral; Policy implementation risk; FX intervention; government paper; expenditure transparency; Arrears; Debt sustainability; Global
Cover IMF Staff Country Reports
Sri Lanka: Request for an Extended Arrangement Under the Extended Fund Facility-Press Release; Staff Report; and Statement by the Executive Director for Sri Lanka
International Monetary Fund. Asia and Pacific Dept
This paper presents Sri Lanka’s Request for an Extended Arrangement under the Extended Fund Facility (EFF). The objectives of the EFF-supported program are to restore macroeconomic stability and debt sustainability, safeguarding financial stability, and stepping up structural reforms to unlock Sri Lanka’s growth potential. All program measures are mindful of the need to protect the most vulnerable and improving governance. Sri Lanka should stay committed to the multipronged disinflation strategy to safeguard the credibility of its inflation-targeting regime. As the market regains confidence, the authorities’ recent introduction of greater exchange rate flexibility will help to rebuild the reserve buffer. The ongoing efforts to tackle corruption should continue, including revamping anti-corruption legislation. The ongoing IMF governance diagnostic mission that assesses Sri Lanka’s anticorruption and governance framework should guide a more comprehensive anti-corruption reform agenda. Close collaboration between Sri Lanka and all its creditors will be critical to expedite a debt treatment that will restore debt sustainability consistent with program parameters.
Keywords:
staff appraisal; LIOA policy; staff supplement; arrears to Iran; IMF program parameter; Inflation; Fiscal consolidation; Global
Cover IMF Working Papers
Coming Clean on Your Taxes
Sebastian Beer and Ruud A. de Mooij
This paper develops a simple model to explore whether a higher detection probability for offshore tax evaders—e.g. because of improved exchange of information between countries and/or due to digitalization of tax administrations—renders it optimal for governments to introduce a voluntary disclosure program (VDP) and, if so, under what terms. We find that if the VDP is unanticipated, it is likely to be optimal for a revenue-maximizing government to introduce a VDP with relatively generous terms, i.e. a low or even negative penalty. When anticipated, however, the VDP is neither incentive compatible nor optimal, as it induces otherwise compliant taxpayers to evade tax. A VDP can then only be beneficial if tax evasion induces an external social cost beyond the direct revenue foregone, e.g., due to adverse effects on overall tax morale. In contrast to the common view that VDPs should come along with additional enforcement effort, we find that governments should relax enforcement if the VDP itself provides more powerful incentives to come clean.
Keywords:
Tax evasion; Voluntary disclosure program; Tax amnesty; appendix I. Optimal VDP penalty; VDP participation; VDP penalty; detection probability; A. tax evasion; Tax administration core functions; Tax return filing compliance; Global
Cover South Asia's Path to Resilient Growth
South Asia's Path to Resilient Growth

Abstract

South Asia’s Path to Resilient Growth highlights the remarkable development progress in South Asia and how the region can advance in the aftermath of the COVID-19 pandemic. Steps include a renewed push toward greater trade and financial openness, while responding proactively to the distributional impact and dislocation associated with this structural transformation. Promoting a green and digital recovery remains important. The book explores ways to accelerate the income convergence process in the region, leveraging on the still-large potential demographic dividend in most of the countries. These include greater economic diversification and export sophistication, trade and foreign direct investment liberalization and participation in global value chains amid shifting regional and global conditions, financial development, and investment in human capital.

Keywords:
South Asia; sustainable growth; structural reforms; macro-financial management; IMF staff calculation; poverty head count ratio; health outcome; government of India; infrastructure investment; technical efficiency; value chain; teachers' wage; Exports; Climate change; Employment; Inflation targeting; East Asia; Global; Asia and Pacific; Southeast Asia
Cover IMF Staff Country Reports
Sri Lanka: Selected Issues
International Monetary Fund. Asia and Pacific Dept
Selected Issues
Keywords:
A. government financing; General government tax revenue; indirect tax revenue composition; B. tax revenue performance; average revenue; Value-added tax; Consumption taxes; Informal employment; COVID-19; South Asia; Global; Asia and Pacific
Cover The IMF and Capacity Development: Evaluation Report 2022
The IMF and Capacity Development: Evaluation Report 2022
International Monetary Fund. Independent Evaluation Office

Abstract

Capacity development (CD) is a key function of the IMF, aiming to assist its member countries develop their institutional and human capacity to design and implement sound macroeconomic and financial policies. CD has been provided to all IMF member countries at some point, although it is directed mainly toward low- and middle-income countries. CD represents about one-third of the IMF’s administrative budget, having expanded substantially in the past decade. This evaluation assesses how effective the IMF has been in meeting the CD needs and expectations of recipient countries, and the Fund’s institutional objectives for CD, during 2012-20. It also provides an initial review of how IMF CD adapted to the challenges of the COVID-19 pandemic. The evaluation finds that IMF CD was relevant, valued, and broadly effective. Recipients, donors, and the wider membership saw IMF CD as being of the highest technical quality in the Fund’s core areas of expertise and generally perceived that it had become better tailored to recipient needs and circumstances. Overall, Fund CD has supported member countries in building the institutional capacity, in a very wide range of country circumstances. The IMF has also put substantial effort into integrating CD with surveillance and programs, which has in general enhanced its overall engagement with member countries. While recognizing these achievements, the evaluation also identifies a number of important shortcomings and challenges. The evaluation includes recommendations to enhance the strategic framework for, and prioritization of, CD; information available to Executive Directors and opportunities to exercise their oversight role; the integration of CD with surveillance and programs, particularly in the context of programs; CD ownership and delivery; the monitoring and evaluation framework; the sustainability of the CD funding model; and HR policies and incentives to maintain and develop the expertise in the Fund’s core and newly emerging CD topics.

Keywords:
Capacity Development; Technical Assistance; Training; Donors; Capacity Building; Institutional Capacity; IMF CD; CD strategy review; CD resource; CD ownership; CD work; COVID-19; Absorptive capacity; Climate change; Information and data management; Global; Middle East and Central Asia; Middle East; Central America; Southeast Asia; North Africa; Africa; Western Hemisphere; Europe; Asia and Pacific