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Tuesday, July 21, 2009 - 7.09 GMT |
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IMF set to
approve US$ 2.5 Billion to SL |
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The
International
Monetary
Fund
(IMF)
reached
agreement
with the
Sri
Lankan
authorities
on an
economic
program
equivalent
to 2.5
billion
dollars,
said
Managing
Director
of the
International
Monetary
Fund,
Mr.
Dominique
Strauss-Kahn
in a
statement
on Sri
Lanka
yesterday.
The
program
is
expected
to be
considered
by the
Executive
Board on
July 24.
The
approval
by the
Executive
Board
would
enable
Sri
Lanka to
draw an
amount
equivalent
to SDR
206.7
million
(about
US$313
million)
immediately.
He said
the end
of the
conflict
provides
Sri
Lanka
with a
unique
opportunity
to
undertake
economic
reform
and
reconstruction,
which
would be
key to
laying
the
basis
for
higher
economic
growth
in the
years
ahead.
To this
end, the
government
has
formulated
an
ambitious
program
aimed at
restoring
fiscal
and
external
viability
and
addressing
the
significant
reconstruction
needs of
the
conflict-affected
areas.
The IMF
staff
supports
this
program,
specifically
the
government’s
goals of
rebuilding
reserves,
reducing
the
fiscal
deficit
to a
sustainable
level,
and
strengthening
the
financial
sector,
Mr.
Dominique
said.
The
reconstruction
effort
will be
a large
undertaking,
with
significant
spending
needs.
The
government’s
program
aims to
meet
these
needs
while
safeguarding
debt
sustainability
by
boosting
revenue
and
reducing
spending
in other
areas.
This
program
will
also
provide
a
framework
for
international
donors
to
assist
the
government
in
financing
its
reconstruction
effort.
I would
like to
call
upon the
Sri
Lankan
authorities
to work
with the
donor
community
to
ensure
an
adequate
level of
financing
for the
reconstruction
effort
to lay
the
foundation
for
future
growth,”
he said.
The
Central
Bank
Governor
of Sri
Lanka
also
said
that it
is
expected
to be
considered
by the
Executive
Board on
July 24.
And the
approval
by the
Executive
Board
would
enable
Sri
Lanka to
draw an
amount
equivalent
to
US$313
million
immediately.
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