Donor Threat

The countrys top multilateral donors warned that economic and political stability are key to get aid following.
Sri Lankas top multilateral and bilateral donors have warned that promised record aid flows could fall sharply unless the government stuck to the peace process and carried out key economic reforms.rn

rnLenders to the country pledged a mammoth US$ 4.5 billion at a donor conference in Tokyo this year largely linked to progress in the peace process and economic reforms.rn

rnThe International Monetary Fund has postponed the release of the second tranche of a generous budgetary support loan.rn

rnIMF resident representative Jeremy Carter told LBR that presentation of the budget is a prerequisite for releasing the next tranche of the loan.rn

rnHowever, the IMF will also review the political and economic climate before releasing any more money from the loan, which is only a standard practice at the Fund.rn

rnIf the budget is presented on Wednesday as planned the fund will review the proposa