May 14, 2009 (LBO) – Sri Lanka is working on a back-up plan with other countries to boost foreign reserves in addition to an International Monetary Fund (IMF) loan, Central Bank governor Nivard Cabraal said. “All of us must have a plan A, plan B, plan C and plan D if possible and we are working on those,” said Cabraal, told the the 27th LBO-LBR CEO Forum this week.
The Central Bank has been negotiating with the IMF to secure a 1.9 billion dollar bailout after it lost reserves defending a dollar peg.
But comments by Western nations, linking it to an internal conflict have raised doubt about the date the funds could be released.
Cabraal, was answering questions at the LBO-LBR CEO Forum called ‘Governor’s Edition – a fireside chat’ held at the Cinnamon Grand hotel attended by over 200 senior corporate executives.
In March the Central Bank inked a foreign exchange (forex) swap agreement with the Malaysian Central Bank for 200 million dollars.
“Again looking at our roadmap we said we’ll be looking at certain swap arrangements with certain countries and we have already done one and there’s another one that’s very close,” said Cabraal
“I was there a couple of weeks ago and we had some