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The Board has also approved Sri Lanka quote s request to extend the period of the current programme by two months to August 19 2002.
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rnrnThe Sri Lankan Government resorted to an US$ 253 mn stand by arrangement with the IMF early last year following a steep drop in official reserves and free float of Rupee exchange rate.

rnrnGovernment was required to contain its budget deficit at 8.5 percent of GDP as the main condition of the programme.

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rnrnThe IMF disbursed an US$ 130mn initial installment in March 2001, which was to be followed by four quarterly installments of US$ 30mn.

rnrnA series of economic performance reviews that will ensure that government quote s fiscal situation stays on track, were scheduled at the end of each quarter in order to release the tranch payments.

rnrnHowever, the economic performance reviews scheduled for last year were not completed due to political instability and terrorist attacks. This resulted in the program coming to a standstill.

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rnrnThe UNF government, which came

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