Nov 10, 2009 (LBO) – The International Monetary Fund (IMF) has released country report and staff papers covering the background and economic analysis leading up to a stand by loan to the island in July. Sri Lanka’s economic management has improved in recent months with both inflation and interest rates coming down, but external borrowings have gone up due to excessive state spending.
The country report also contains a debt dynamic analysis. Sri Lanka has suppressed economic reports relating to the annual ‘article IV’ consultations since 2008, leading to concerns about the transparency in economic management.
The IMF said the documents were suppressed because government approval was not given to release the documents.
Following the approval of the second tranche of the IMF loan last week both the letter of intent and a technical memorandum was immediately released.