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Country to face dire economic consequences; UNP

31 May 2012 - {{hitsCtrl.values.hits}}

The UNP yesterday charged that the country would face dire economic consequences if it went ahead with another IMF loan of US$500 million as a security arrangement which the government had requested for recently.

UNP MP Eran Wickremaratne said this in response to a statement by International Monetary Cooperation Senior Minister Sarath Amunugama who said on Wednesday that the government would begin negotiations for another IMF loan.

He said that the government would have to beg on its knees and hope that it would receive a loan of US$500 million from the IMF for if not the economy would fall apart.

Wickremaratne said that the country’s budget deficit was widening further, the Balance of Payments was on the decline and that the devaluation of the rupee showed that the economy would face more setbacks.

He said that countries such as Spain, Portugal and Greece did not do IMF transactions as they had their own economic policy. However the government had made Sri Lanka heavily dependant on the IMF partnership.

“It is not surprising that the government is requesting for another loan. The government’s policy is very much IMF driven. The Central Bank always paints a pretty picture but the reality is that the situation in the country is further deteriorating,” Wickremaratne said. (By Olindhi Jayasundere)

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Country to face dire economic consequences; UNP

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