IMF Fund Facility:SL received first tranche of USD 330 Mn yesterday: Siyambalapitiya

• IMF funds can be transferred to treasury in rupees or Dollars at anytime

By Ajith Siriwardana  

Sri Lanka received the first tranche of USD 330 million of the IMF Extended Fund Facility yesterday, State Minister of Finance Ranjith Siyambalapitiya said yesterday.  

He told Parliament that the IMF has granted permission to transfer the IMF funds to the Treasury to be used for the requirement of the country whereas on 16 previous occasions, IMF Funds could only be deposited in the Central Bank’s Dollar account.  

“The IMF has allowed the funds to be transferred to the account of the Deputy Secretary to the Treasury in rupees or Dollars soon after receiving the funds. On 16 occasions in the past, the IMF did not allow us to do so. We were only allowed to deposit the funds in the Central Bank’s Dollar account. After discussions with the IMF, we were able to convince the IMF that we need to provide relief to poor and vulnerable groups initially. Due to the government’s successful intervention, we managed to obtain the approval to use the IMF funds for the requirements of the country,” he said.  

The Minister said Sri Lanka had discontinued the IMF agreement on many occasions in the past and added that Sri Lanka must make it a point to follow the IMF agreement to achieve the desired targets.    

• After discussions with the IMF, we were able to convince the IMF that we need to provide relief to poor and vulnerable groups initially.
•  Sri Lanka must make it a point to follow the IMF agreement to achieve the desired targets