IMF approves $218M loan to Sri Lanka
[TamilNet, Tuesday, 05 April 2011, 11:20 GMT]
Completing the sixth review under the Stand-By arrangement (SBA) for Sri Lanka, the International Monetary Fund (IMF) approved US $218.3 million for immediate disbursement bringing total disbursements under the arrangement to an amount equivalent to SDR 1.10 billion (about US$ 1.75 billion), IMF reported in its website. The SBA was approved on July 24, 2009 for an amount equivalent to SDR 1.65 billion (about US$ 2.62 billion), or 400 percent of Sri Lanka's quota.
Following the Executive Board's discussion on Sri Lanka, Mr. John Lipsky, Deputy Managing Director and Acting Chair, stated:
“Reforming the two state energy enterprises and bringing their combined operating balance to zero this year would ensure the durability of fiscal adjustment. To this end, it will be important to allow adjustment of domestic prices to reflect fluctuations in international fuel prices."
“Financial sector reforms will continue to focus on strengthening the resilience of this sector, and expand the scope of financing options available to the private sector by increasing the depth of the corporate bond market and improving the functioning of the stock market.”