Sri Lanka to work out surveillance deal with IMF: CB Governor

May 08, 2012 (LBO) – Sri Lanka will work out a surveillance program with the International Monetary Fund to boost investor confidence after a current deal with the agency ends in July 2012, Central Bank Governor Nivard Cabraal said. “Thereafter the type of relationship we will have with them is something we will have will be something that we will be discussing,” Cabraal told reporters.

“Particularly because we want to have an engagement that will convey a sense of confidence to some of the foreign investors, who will also wish to see that kind of relationship.

“Not because of Sri Lanka’s situation – I think they have a greater amount of confidence in the Sri Lanka economy – but due to the fact that the world conditions are also quite difficult to today.”

Cabraal said Sri Lanka and the IMF may work out some parameters and ensure monitor them but it was too early to say exactly what the arrangement would be.

An IMF team is due in Sri Lanka to discuss the disbursement of a final 400 million US dollar tranche of a 2.5 billion US dollar bailout deal.

Sri Lanka struck bailout deal after the country ran into a balance of payments crisis in 2008-2009, triggering capital flight.

Sri Lanka has run into repeated