Sri Lanka IMF loan depends on Executive Board: official

July 3, 2009 (LBO) – The award of a stand by loan for Sri Lanka by the International Monetary Fund (IMF) is awaiting approval of its executive board, which is yet to set a date to consider the application, an official said. “But discussions are continuing, and the finalization of the program, as with any other program, would of course depend on the Executive Board,” IMF spokesperson Caroline Atkinson told reporters in Washington.

“We don’t have a date for an Executive Board meeting at present on Sri Lanka.”

Sri Lankan officials have said that a technical memorandum of understanding with the IMF is now being updated with fresh data, with the fiscal side in particular deteriorating.

Delayed

Though the loan was expected in April or May the most powerful member of IMF’s Executive Board, as well as Britain, has been making statements against Sri Lanka over the treatment of civilians in the last stages of fighting with Tamil Tiger separatists.

Central Bank governor Nivard Cabraal told an economic forum in Colombo Wednesday said Sri Lanka’s balance of payments troubles was triggered by a global meltdown largely caused by Western nations.

“We are all members of the IMF,” Cabraal said. “We