Former UNP Deputy Leader and Parliamentarian Ravi Karunanayake has warned that the National People’s Power (NPP) Government faces a high-risk International Monetary Fund (IMF) review next month, amid growing pressure on the public.
Karunanayake said Sri Lanka’s macroeconomic stability has been achieved at a significant cost to people’s living standards, with continued fiscal tightening placing additional pressure on households.
He noted that the Government would need to maintain strict fiscal discipline to secure the next tranche under the IMF programme.
The MP also pointed out that the Government is expected to meet its target of increasing state revenue to 15% of Gross Domestic Product (GDP).
However, Karunanayake warned that continued austerity measures could eventually exceed the public’s tolerance.
He cautioned that while economic indicators may show technical stability, prolonged pressure on household incomes and living standards could lead to serious social unrest if the Government fails to balance fiscal reforms with the needs of the public.
