IMF releases US$ 218 m to SL

5 April 2011 02:40 am - 13     - {{hitsCtrl.values.hits}}


The International Monetary Fund (IMF) on Monday completed the sixth review of Sri Lanka's economic performance under a program supported by a Stand-By Arrangement (SBA) and approved disbursement of an amount equivalent to about US$ 218.3 million loan.

The completion of the review enables the immediate disbursement of an amount equivalent to about US$ 218.3 million, bringing total disbursements under the arrangement to an amount equivalent to about US$ 1.75 billion, the IMF said in a statement.

The Executive Board also approved a waiver of applicability for the three end-March performance criterions on (i) the net international reserve target (ii) reserve money and (iii) net domestic financing of the central government. A rephasing of the remaining disbursements was also approved by the Board.

The SBA was approved on July 24, 2009 for an amount equivalent to about US$ 2.62 billion, or 400 percent of Sri Lanka's quota.
Following the Executive Board's discussion on Sri Lanka, Mr. John Lipsky, Deputy Managing Director and Acting Chair, stated:

“The Sri Lankan economy continues to make progress under the Fund-supported program and overall macroeconomic developments remain favorable. Growth is strong, inflation remains in single digits, and reserves are at a comfortable level. Recent heavy rains and flooding will significantly damage the various crops, as well as rural infrastructure. However, given the size and strength of the economy, the overall impact on output growth is expected to be limited.

“The 2010 budget deficit target has been met and budget developments so far in 2011 are broadly in line with expectations. The authorities’ plan to handle the flood-related expenses by reallocating and reprioritizing expenditure within the existing budget will help maintain the program’s deficit target for 2011.

“Reforming the two state energy enterprises and bringing their combined operating balance to zero this year would ensure the durability of fiscal adjustment. To this end, it will be important to allow adjustment of domestic prices to reflect fluctuations in international fuel prices.

  Comments - 13

  • v vendetta Tuesday, 05 April 2011 03:13 AM

    Well embezzlement of funds like this by government officials is done in almost every country, and its pretty much impossible to stop it... But at least some development will take place through these funds... So I guess something is better than nothing...

    sam Tuesday, 05 April 2011 09:07 AM

    Most of it will definately end up in the minister's pockets

    Saman Tuesday, 05 April 2011 03:52 AM

    IMF does not provide money for road construction! International Monetary Fund - Monetary being the key word! Monetary Policy involves exchange rates, inflation, money demand & money supply NOT development projects.

    TAMILAN Tuesday, 05 April 2011 04:09 AM

    yap, i agreed something is better than nothing...
    but i have question "Whether is there any something we achieve after all corrupt??"

    SPK Sampanthan Tuesday, 05 April 2011 09:41 AM

    IMF trust the President of SL.

    Hakeem Tuesday, 05 April 2011 04:03 AM

    Why do we need to get loans from IMF when the Govt is selling Prime Lands to Foreigners in Foreign currency? Why? Why?

    kassa Tuesday, 05 April 2011 04:27 AM

    Ohhh Loans......

    Cobra Wednesday, 06 April 2011 02:36 AM

    The result of the recent increases no doubt!

    Facinator Tuesday, 05 April 2011 10:05 AM

    More loans. Plenty of money to spend.

    And also more burden on our children.

    haawa Tuesday, 05 April 2011 10:05 AM

    In the past 5 years most of the new loan money was used to pay the existing loans.Hope they use this for some thing better this time.

    Darwin Tuesday, 05 April 2011 05:46 AM

    The Sri Lanka government also claims that we have a big forigine exchange surplus, So why these loans. It is our culture?

    Faqi Tuesday, 05 April 2011 02:12 PM

    Does anyone know the terms attached to these loans? Interest rates, payment schedules & installments, time period etc.?

    TAMILAN Tuesday, 05 April 2011 03:06 AM

    who ever happy for the IMF loan,
    have you plan ever how to settle this loan in future??

    we are taking loan too much to developed the country, but the question is " is that Money is used for such Development???"

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