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WB, IMF, ADB won’t be our funding sources: Cabraal

26 March 2013 04:03 am - 19     - {{hitsCtrl.values.hits}}

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Sri Lanka will not go after global lending agencies such as the World Bank (WB) the IMF and the Asian Development Bank (ADB) because Sri Lanka is categorized as a Middle Income Nation, Central Bank Governor Ajith Nivard Cabraal said yesterday

He said the strategy for future foreign funding would be through bilateral agreements with friendly countries.

Mr. Cabraal said Sri Lanka had been able to maintain a single digit inflation level for the last 50 months and this reflected the macroeconomic management of the country.

“Though some politicians say otherwise, Sri Lanka is not vulnerable where debt is concerned. The foreign reserves have been more than US$ 6 billion over the past couple of years and therefore there is no risk in debt servicing and is sustainable,” he said.

Mr. Cabraal said Sri Lanka still had access to IMF, WB and ADB funding as these global lending agencies had a reasonable appetite to fund Sri Lanka despite the fact that Sri Lanka was capable of supporting the growth momentum from deferent sources.  

He said Sri Lanka had qualified under the “less indebted” category in five out of six external debt indicators in accordance with the parameters defined in the manual on Effective Debt Management of the UN-ESCAP, to assess the external debt vulnerability of a country.

“The only indicator in which Sri Lanka is placed in the “moderately indebted” category is “the disbursed external debt outstanding to Gross national income” category, where Sri Lanka’s indicator value is 37%, which is marginally above the threshold level specified for the ‘Less indebted category’. In this context, it is noted that these values have been recorded by Sri Lanka at a time when public debt risks emanating from the global economic slowdown has been rising in many economies,” Mr. Cabraal said.

“In fact the GDP level over the foreign debt ratio has improved over the past 10 years from 105% in 2002 to 80% by 2012, which is a quite an achievement. Our target is to bring this down further in the next couple of years,” Mr. Cabraal added. (Sandun A. Jayasekera)

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  Comments - 19

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  • Rohan Tuesday, 26 March 2013 12:26 PM

    I don't think we have sold. But other countries are trying to ally with China and they won't ever join them especially US and UK.

    tony Wednesday, 27 March 2013 05:35 AM

    Den of liars. Is it that WB, IMF & ADB will not give any more loans cause we have borrowed to the maximum. Who are the friendly countries.

    Accountant Wednesday, 27 March 2013 05:26 AM

    We have invested in Greek bonds like the Cypriots.
    Same thing will happen in Srilanka.We will be the next Cyprus. Your minister of finace has already declared state banks in Srilanka are bankrupt . Aiyyo wander of Asia,!,,

    Nina Kamal Tuesday, 26 March 2013 04:42 PM

    Why do you have to lend, when the money is in the coffers of the very rich and also eating up whatever the middle class incomers you are referring! Budu ammo rata nidiyana wa d oyala!!! Modaya rawaten ekketh simawak thiyanawa!

    Jayantha Tuesday, 26 March 2013 04:34 PM

    Why don't you pay-off IMF,WB 6 Billion US Dollar loans including One Billion Dollar Hedging loss which keeps accumulating losses...

    SudhuPancha Tuesday, 26 March 2013 02:21 PM

    Why not print money!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    amitha mdun Tuesday, 26 March 2013 12:38 PM

    shut-up !

    chux Tuesday, 26 March 2013 12:35 PM

    Only gods know about these statistics

    kautilya Tuesday, 26 March 2013 12:33 PM

    Middle Income Country? That is why you are using 7 vehicles including a brand new BMW at the cost of tax payers money. hallelujah!!!

    Nimal Tuesday, 26 March 2013 12:32 PM

    There is no money to lend anyway. EU is in real trouble - Cyprus went down and UK rating went down as well frp, triple A to double A. Europe, US in dire straits.

    Hapuarachchi Tuesday, 26 March 2013 04:33 AM

    Kabalen Lipata? or Lipen Kabalata? Any way it burning !

    weha Tuesday, 26 March 2013 09:41 AM

    Mr Cabral,
    the income can be $3k if all the 20million 3k each OR
    if the 20Million earn 1k each and your people (about 10000) earn $4million each
    I bet on the second one :)

    renu Tuesday, 26 March 2013 08:35 AM

    Cabraal is considered a liaer like the Great Liaer Prof (GLP) by the foriegn funding agencies

    Discombobulations Tuesday, 26 March 2013 08:34 AM

    70% or thereabouts of the people of this country are low to very low income.

    Gobi Tuesday, 26 March 2013 08:26 AM

    beg China to give loan. They will give loan and cut your throat ver soon.

    Seeni Bola Tuesday, 26 March 2013 08:15 AM

    Middle Income Nation? Maybe for you it is. Certainly not for us!

    C.Seneveratne Tuesday, 26 March 2013 08:00 AM

    We have sold the country to the Chinese, now even the Chinese
    will stop aiding us.

    Kingsley Wijesinhe Tuesday, 26 March 2013 04:54 AM

    Mr. Cabraal, don't give us all this 'middle income country' stuff. You are not going after global lending agencies because they won't give even if you ask. You seem to have forgotten that you tried to get a further US$ 500 million from the IMF recently and they refused. No wonder people say there are liars, damn liars and then Cabraal.

    saman Tuesday, 26 March 2013 04:53 AM

    WB=IMF


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