Sri Lanka keeps back IMF technical MOU

Minister appoints Dr Swaminathan to IPACSL as Chairperson

July 27, 2009 (LBO) – Sri Lanka has not released the technical memorandum of understanding between the government and the International Monetary Fund, taking a step back from the level of transparency established earlier. Sri Lanka’s central bank has published a letter of intent (LOI) and a memorandum of economic and financial policies (MEFP) relating to a 2.6 billion US dollar stand by arrangement with the IMF but not the technical memorandum of understanding (TMU).

The TMU of Sri Lanka’s last standby agreement in 2001, as well as the TMU of a poverty reduction strategy facility (PRGF) along with country reports had been released to the public.

International trade minister G L Pieris said last week that all documentation relating to the agreement would be released to the people of Sri Lanka.

“The government of Sri Lanka has authorized the IMF to put in to the public domain all documentation in this regard,” Pieris told reporters Thursday.

“So from tomorrow onwards it will be apparent to everybody that there is no conditionality which is anyway harmful to the country and that it provides a very strong impetus to the development of the nation.”

IMF programs generally do not contain conditions that