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IMF clears Sri Lanka second tranche loan of 329 mln dlrs

[AFP, Saturday, 7 November 2009 08:42 One Comment]

ALeqM5iD1n5vOzxqlriNDUAO0lNPGXjhaw The International Monetary Fund said Friday its executive board approved the release of 329.4 million dollars to Sri Lanka, the second portion of a loan to help the country weather the economic crisis.

The IMF said the board completed the first review of Sri Lanka’s economic performance under a 20-month standby loan.

This allows the immediate disbursement of the second tranche, bringing total disbursements under the arrangement to 658.8 million dollars.

"Sri Lanka’s performance under the standby arrangement is encouraging," said IMF deputy managing director Takatoshi Kato.

"Recent economic developments have been stronger than expected, and the near-term outlook has improved. While the Fund-supported program had helped Sri Lanka avoid a balance of payments crisis, fundamental vulnerabilities remain to be addressed. Strict adherence to the program targets and steadfast implementation of the reform agenda will be essential."

The IMF approved the program in July to help the South Asian country rebuild international reserves and strengthen Sri Lanka’s domestic financial system.

Britain abstained from voting on the loan after politicians indicated they could not support it because of an ongoing tense political situation.

Britain wanted to "secure long-term peace and prosperity" for Sri Lanka through reconciliation between its communities, officials said in a letter to the multiparty parliamentary groups on Sri Lanka and Tamils.

Human Rights Watch said the IMF should have set conditions on the loan, including demands that the Sri Lankan government help resettle nearly 300,000 Tamil civilians being held in tightly guarded camps.

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One Comment »

  • dees pillay said:

    The IMF loan to Sri Lanks is an insult to human decency,
    Sri Lanka has no press freedom, it kills 20000, innocent TAMIL men, women and children , in one weekend(may 2009)just because they were TAMILS,

    Thn IMF should give Mugabe loan also, If you compare Mugabe or idi Aman, or saddam Hussein to Sri Lankan leaders, they will be angels,
    The Sinhalse people are a sick nation..Buddah will be turning in his grave