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Maldives turns to Sri Lanka for dollars as IMF suspends deal

Nov 20, 2010 (LBO) - Maldives has had discussions with Sri Lanka on the possibility of gaining access to a hard currency as money printing created dollar shortages and the International Monetary Fund suspended a deal with the archipelago.
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The International Monetary Fund suspended a deal with the archipelago as the state was unable to control spending.
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In 2009 the government has run a deficit of 26.
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5 percent of gross domestic product.

"In order to safeguard economic stability, keep the economy growing, and prevent a surge in borrowing costs and the cost of living, it is imperative that the government prepare, and the Majlis (parliament) pass, a 2011 budget that brings the deficit down sharply," the IMF said in statement two weeks ago.

"In addition, revenue measures, including the business profits tax, as well as credible steps to control the wage bill, should be passed promptly to ensure that deficits continue to trend down in 2012 and beyond.

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"The successful implementation of the much needed fiscal adjustment will require broad political support and cooperation between the Government, the Majlis, the independent commissions, and civil society.

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"It is to be hoped that all stakeholders realize the gravity of the fiscal

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