Why Tracking the IMF Programme Implementation is of Public Interest

Abstract

As Sri Lanka enters its 17th International Monetary Fund (IMF) programme, a critical question remains. Will the country break from the past patterns of inconsistency and failure in following the plan it lays out with the IMF, or will those patterns be repeated? In this instance, what is required is not to lay the groundwork for another IMF programme in the future, but to develop the ability to sustainably recover from the present debt-driven economic crisis. Sri Lanka successfully completed only 9 out of the 16 previous programmes it undertook. In the last two decades alone, the nation was in three IMF programmes spanning 12 years. These programmes had clear commitments and key macroeconomic targets, but Sri Lanka achieved its revenue, primary, and budget balance targets in only two out of those 12 years. In the past, there has not been public tracking of the implementation of IMF programmes. The success or failure in the achievement of targets was revealed only through six monthly reviews by the IMF, and even then, it was hardly subject to public discussion. This lack of public interest in the implementation of an IMF programme-based economic plan has left room for short-term decision making. Governments made decisions, especially in election years, to prioritise short-term measures that helped gain votes over the longer-term public interest of adhering to the economic plan. In April, Verité Research launched a public platform known as ‘The IMF Tracker’, which tracks 100 identified commitments from Sri Lanka’s Letter of Intent sent to the IMF. This platform helps improve public understanding, interest and engagement in the longer-term economic recovery plan as it has been currently developed (warts and all). It can then also help the Sri Lankan public understand the government’s current plan and hold it accountable to implementing appropriate actions that lead to longer term economic success.