Sri Lanka lobbies for emergency fund to tide over external shocks like high oil prices

Sri Lanka asked international monetary authorities to come up with a contingent facility to tide over crude oil shocks that’s strangling trade dependent nations. Sri Lanka asked international monetary authorities to come up with a contingent facility to tide over crude oil shocks that’s strangling trade dependent nations. Such funds could be used to help develop countries get through similar crisis, like current spikes in fuel prices, Finance Minister Dr. Sarath Amunugama told boards of governors of the World Bank and IMF on Sunday.

“All these imply that the Fund resource base needs a significant expansion,” he said during his Washington address.

Besides monetary policies, the Bretton Woods and their trade cousin the World Trade Organisation, are also pushing for a global public goods concept, where open markets and accessibility forms a critical piece in the world economic jigsaw.

Being a 75 percent trade dependent economy, Amunugama says, such moves are vital to keep small economies ticking.

“We welcome the activation of the Trade Integrating Mechanism by the Fund to help ease the related temporary balance of payments pressures,” he said.
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