Sri Lanka IMF loan would not be delayed on politics: central bank

Chief Regulatory Officer at CSE Renuke Wijayawardhane presenting the listing certificate to Executive Chairperson at Renuka Hotels Shibani Thambiayah

May 2, 2009 (LBO) – Technical levels discussions for Sri Lanka’s International Monetary Fund (IMF) loan have now been finalized and with the UN Security Council also not standing in the way, there would be no further delays, a senior central banker said. Media reports indicated the United States, which has substantial say in IMF decision-making, could delay a 1.9 billion US dollar IMF balance of payments support loan to Sri Lanka.

“Neither the governance rules nor the mandate of the IMF allow political considerations to be taken into account and therefore the Staff Report should be placed before the Board in a few days time,” deputy central bank governor Ranee Jayamaha said.

She says the UN Security council has also said that blocking the loan was unnecessary and there was no reason for the facility to be delayed any longer.

Claude Heller, the Mexican ambassador who presided the 15-nation UN Security council in April, indicated there was no pressure at the council to withhold the IMF loan.

“No … I have not heard anyone suggesting this at this time,” AFP news agency quoted Heller as saying in response to a question after an informal council discussion on the Sri Lankan situation late Thursday.

Jayamaha said technical level disc