Officials from the Washington-based International Monetary Fund (IMF) are in Sri Lanka for an economic review but there is no discussion on any additional loan facility, Central Bank Governor Nivard Cabraal said. “No, this is a routine visit,” he told the Sunday Times, when asked whether an earlier suggested US$ 500 million facility would be [...]

Feeds Editorials Times Online

News

IMF mission here for economic review: Cabraal

View(s):

Officials from the Washington-based International Monetary Fund (IMF) are in Sri Lanka for an economic review but there is no discussion on any additional loan facility, Central Bank Governor Nivard Cabraal said.

“No, this is a routine visit,” he told the Sunday Times, when asked whether an earlier suggested US$ 500 million facility would be discussed.

He said the team was mainly studying the impact of policy changes made in February and March (when the US dollar was allowed to gain against the rupee). “We will consider our future relationship based on local needs and other possible global developments. That will be done on a future date and not at this mission,” he said.

Other senior CB officials also said the IMF was on a routine staff visit. “This visit is for an annual review of the economy and has nothing to do with any added loan or facility,” one senior official said.

However top Government sources said an added IMF facility — the amount of which was yet to be finalised — was under discussion. “It could either be for the Treasury or the Central Bank,” one source said.

When the IMF completed in July providing the last instalment in the $2.5 billion Stand-by Arrangement (SBA-loan), the CB said another additional $500 million was being considered to be requested from the Fund.

Opposition parties due to meet the visiting team are expected to raise concerns over governance issues and the need for the IMF to recognise this in loan requests.

“Governance is a serious problem and the IMF needs to recognise this in its discussions with the Government,” said UNP MP and economist Harsha de Silva. He said the UNP generally met visiting IMF teams and when this happens, most likely next week, this issue would be raised.

Sri Lanka’s foreign reserves are rising, helped also by a lower import bill, according to the Central Bank.
The CB said in a September statement on the economy that net inflows of $229 million came to the Colombo Stock Exchange up to mid-September, while proceeds of the fifth international sovereign bond issued in July and foreign investments in Government securities amounting to $1.7 billion in the same period “helped to ease pressure in the external sector, raising gross official reserves above $7 billion by end of July.”




Share This Post

DeliciousDiggGoogleStumbleuponRedditTechnoratiYahooBloggerMyspace
comments powered by Disqus

Advertising Rates

Please contact the advertising office on 011 - 2479521 for the advertising rates.