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SL seeks another US$500mn from IMF

30 May 2012 09:35 pm - 55     - {{hitsCtrl.values.hits}}

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On completion of the International Monetary Fund (IMF) Standby Arrangement (SBA) of US$2.6 billion next month, Sri Lanka will start negotiations with the IMF for another US$500 million Security Arrangement (SA), International Monetary Cooperation Senior Minister Sarath Amunugama said yesterday.

“This will be an important policy support for the government as it faces some critical issues like rising prices in fuel and other commodities in the global market,” the senior minister said. “The SBA with the IMF will end with the release of the final tranche of some US$ 500 million. The IMF programme with Sri Lanka for the release of US$2.6 billion has been judged to be a confidence booster on Sri Lanka by the global lending agencies.”

Dr. Amunugama said several other borrowers like Spain, Portugal, Greece and Maldives had ended midway their SBA with the IMF because of the difficulty in carrying out policies with regard to the global financial crisis.

He said on the completion of the SBA, discussions would be held to obtain US$500 million as a Security Arrangement with the IMF to enable Sri Lanka to access funds in case of emergency needs.

Dr. Amunugama said Sri Lanka was on the right path with regard to its economy. He said its financial and economic management was under control and was well on its way to achieving the target of 7.2 per cent GDP for this year.

There is no doubt that the IMF will respond positively to Sri Lanka’s request for a Security Arrangement of US$500 million to improve the country’s foreign reserves and face with confidence any possible global economic or financial upheaval.

“What is most important is that Sri Lanka has never defaulted on its repayment obligations and is reputed to be a country that fulfills it loan agreements with international donor agencies,” Dr. Amunugama said.

He said an IMF officials are due in Sri Lanka next week to discuss the final tranche of the US$2.6 billion SB arrangement approved in 2010.

Meanwhile, a Central Bank Economic Research Department spokesman said Sri Lanka had received about US$2.1 billion in eight instalments and IMF officials would arrive in Sri Lanka to review and negotiate the release of the final instalment of US$500 million. (Sandun A. Jayasekera)
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  Comments - 55

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  • T.Ruth Thursday, 31 May 2012 12:18 PM

    Sinhalese Buddhists rather.

    Mason Friday, 01 June 2012 05:54 AM

    We beg for money from the West, but their advises we scoff. How cheap we are, to say the least we are a very shameful and/or shameless country.

    Kabi Thursday, 31 May 2012 12:20 PM

    Sir ask for $100 billion and make Colombo beautifull , Make Sports complex for international tennis. can make big revenue.
    Our assessment is government utilize loans wisely. why don't you plan for Formula 1 track in Sri_lanka.

    Upul Gunawardena Thursday, 31 May 2012 12:33 PM

    Hon. Minister Bandula Gunawardena, Please give some advice to the government how to live within its means without borrowing money from IMF.

    GSK Thursday, 31 May 2012 12:32 PM

    we are making the rich counties richer !!! why this loan is being taken??? the public should stand up and ask question ??? hw this money is going to be spend, who is accountable and son on!!!

    pee da mossa Thursday, 31 May 2012 12:48 PM

    No, joker, more money for the elite to spend lavishly !

    ali Thursday, 31 May 2012 12:57 PM

    More millions for Rajapakses

    wimala Thursday, 31 May 2012 12:34 AM

    Take loans and grants now and waste it on races and cricket tournaments and let our children bear the burden of paying them off in future.

    sunil chandra Thursday, 31 May 2012 01:11 PM

    Lots of talks! But actually its empty. Where are these ppl like Bandula, Joni, etc?

    BlindSide Thursday, 31 May 2012 01:24 AM

    Ha, from the 5 Amp plug, we are now going for a 13 Amp plug. Who will unplug this?

    Benhur Thursday, 31 May 2012 01:32 AM

    Why Borrow from IMF, we can ask from our MP's who is enjoying a lavish life style ... we are having enough debt which is generations to pay...no development in policy and attitutde of our Pariamentarians... this is just to feed them and let the middle income earner pay the debt......this is our country....

    Black Mamba Thursday, 31 May 2012 01:21 PM

    Brace yourselves people, the Tax Man will soon knock at your doors!

    mahen Thursday, 31 May 2012 01:49 AM

    Here comes the currency devaluation!

    Ravi Thursday, 31 May 2012 01:29 PM

    So....... What is your plan to stop it?

    joker Thursday, 31 May 2012 02:03 AM

    more money to waste!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    rambukkan Thursday, 31 May 2012 07:12 AM

    Sri lankan economy and stock market on auto pilot !

    Kerry Raja Thursday, 31 May 2012 07:15 AM

    Invest on T20 for rich dividends.

    Siripala Thursday, 31 May 2012 02:27 AM

    At the end of the day the books must balance, somehow otherwise you simply will run out cash. So the choices are to borrow more, to cut spending, to raise taxes, to print or devalue the rupee. I don't think that anyone really believes.

    willows Thursday, 31 May 2012 07:27 AM

    so it is shopping spree to some one3???

    Ane Kale Thursday, 31 May 2012 07:30 AM

    More or less, "a few are going to get richer very soon"

    kandana Friday, 01 June 2012 10:39 AM

    we are heading the same parth Greece. Watch what had happened there and expect the same in Sri Lanka near future.
    Public sector will be the first effected in fund cuts and layoffs. This will lead to political thermoil, but by that time it will be too late to reverse any thing.

    deva Thursday, 31 May 2012 03:04 AM

    Y 500m? go for another 2.6b miracle of whole world

    Keri Hora Thursday, 31 May 2012 03:20 PM

    ruining this country by taking loans...

    Lakshan Thursday, 31 May 2012 08:12 AM

    Exactly my thought the current government is abusing the use of loans, and the loans taken are not put into proper use most of the loans end up in enhancing the lifestyle of the president and the MPs the common man has no gain from this. If there are no benefits being reaped from the loans taken we are going to end up in a far worse situation in the future. What people don't realise is that only about 10% of the money borrowed is put into good use the rest is just a waste so we will see a small percentage of good use and development when a far greater result can be achieved. Most people in SL don't get this and I think to be honest is the least of their concern even if these people don't get to eat 3 meals a day.

    dellbell Saturday, 02 June 2012 02:00 AM

    US$ 500M.....HEY IS IT ENOUGH? Dear Minister why cant you negotiate it to BILLION?

    Peoples Thursday, 31 May 2012 03:18 AM

    So much noise about $500 million?? Bill gates probably makes more than this in a day.

    Wow, lets host the next Olympics.

    upul Thursday, 31 May 2012 08:24 AM

    Politicians can use this money as a gift of destroying LTTE.. We voted (gave consent).

    Tony Flair Thursday, 31 May 2012 03:58 PM

    Need more money for the rugby 7s. Forget the poor people ,let them stave.

    Namal Kumara Thursday, 31 May 2012 08:26 AM

    The per capita income of Sri Lanka has doubled since 2005. During the same period, poverty has dropped from 15.2% to 7.6%, unemployment has dropped from 7.2% to 4.9%, market capitalization of CSE has quadrupled and budget deficit has doubled. 90% of the households in Sri Lanka are electrified, 87.3% of the population have access to safe drinking water and 39% have access to pipe-borne water.

    Just Another Citizen Thursday, 31 May 2012 08:37 AM

    Woohoo more taxes & price hikes

    katta kuvera Thursday, 31 May 2012 08:42 AM

    Another free trip abroad , tamasha, tamasha, tamasha...

    Leela Thursday, 31 May 2012 04:22 PM

    Charge English as ‘Human Rights’ violators.

    buffaloa citizen Thursday, 31 May 2012 08:48 AM

    As long as we have patriotism fed into our stomach, we sinhalese should never complain.

    shantha madawela Thursday, 31 May 2012 08:52 AM

    why wimal is not saying any thing to this?

    Hussain Thursday, 31 May 2012 05:50 PM

    Get as many loans as possible, then after a few years declare bankruptcy, then the rich countries will forgive the loans. Then start all over again. Thats the way to go. Isn't that what countries such as Greece is doing right now. Most African countries did so in the last decade without any negative side effects. The adage
    "kaapalla beepalla, jolly karapalla, heta marunath hithata sapai, adha jolly karala. ........." applies.

    bernard Thursday, 31 May 2012 05:57 PM

    Yes Namal, nothing to worry. We can pay off the loans in no time from massive incomes you get from Oil wells, Gas wells, Gold from Kelani river, buried treasures, precious stones and profits from Air Lines and harbours.

    fazli Thursday, 31 May 2012 08:57 AM

    Why dont we let IMF know what we feel, end of the day its we who repay. Total mismanagement.

    mohan Thursday, 31 May 2012 09:12 AM

    don't we have debt limit like western countries ?

    PERERA Thursday, 31 May 2012 08:11 PM

    how the hell are we going to pay back all these loans. do we leave it to the later ge=nerations.
    we have a bankrupt administration with a lame leader

    KABAB Thursday, 31 May 2012 04:32 AM

    Few months back, Economic Development Minister said that Sri Lanka will give loans to European countries in time to come. I think this is the time Sri Lanka should give. Borrow US$ 500 Million from IMF and give to these countries for more interest.

    Tronics Thursday, 31 May 2012 09:36 AM

    Terminators still trying to umplug.

    judej Thursday, 31 May 2012 04:35 AM

    Too much Debt. Too much borrowing by SL Govt. Even govt. Banks(BoC) borrowing half billion US dollars. They're mortgaging SL future for next 50-100 years. Officials and politicians should work hard with sound policies to increase GDP. If you want to know how to do it??? ..just follow other SE Asian countries like Vietnam how they're doing it. Don't wait for miracles to happen, just make it happen.

    Mifaz Friday, 01 June 2012 04:53 AM

    Mind your own business.....India.....USA......IMF.....World Bank....RAW.....CIA.....MOSSAD! We are "proud" sri lankans.

    Kondebandapucheena Thursday, 31 May 2012 05:08 AM

    here comes another 500m IMF already put us more condition after Condition,and how many generations are foreseen to pay back this may be our great grand children will pay back,,,,,,,,,,,,,,

    Imran Hussein Thursday, 31 May 2012 05:17 AM

    Two 3rd of the amounts will be allocated for tamashas. Common man gets peanuts.
    'Dr. Amunugama said Sri Lanka was on the right path with regard to its economy' Amunugama, himself knows that he was lying through his teeth.

    Sam Thursday, 31 May 2012 10:53 AM

    Statement looks good. But I am unemployed since 2008. Can you please find me a job?

    Fernando K.i.S Thursday, 31 May 2012 05:36 AM

    This is call wonder of Asia.we are getting loan for pay the previous loans. what a wonderful country in the world .

    kalum Thursday, 31 May 2012 11:02 AM

    At the End of this gournment,The Country also will be finish. They are Distroyng the country.

    Chris Perera Thursday, 31 May 2012 11:07 AM

    what measures have the govt. taken to reduce import export deficit?

    Lal Suranjith Thursday, 31 May 2012 05:38 AM

    what a way to ruin the country

    Yuri Friday, 01 June 2012 05:33 AM

    LOL

    Noor Thursday, 31 May 2012 11:24 AM

    And Cricketers are rich already with public money, Dog will eat this country.

    Yuri Friday, 01 June 2012 05:35 AM

    Hey this is to give Loan to Europe... not for Sri Lankan

    Dinesh Thursday, 31 May 2012 05:50 AM

    May be to give counter loan to Europe......can remember Economic Development Monister was saying SL can grant loans to Europe

    Cuthbert Seneveratne Thursday, 31 May 2012 11:37 AM

    The IFM will enforce conditions so that the poor will get poorer & the fat ones
    will get more fat.


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