Sri Lanka started a push for budget support loans while presenting an economic plan to donors at the development forum last week in Kandy

Sri Lanka started a push for budget support loans while presenting an economic plan to donors at the development forum last week in Kandy.

Sri Lanka started a push for budget support loans while presenting an economic plan to donors at the development forum last week in Kandy. The push came as the president gave an "iron clad" assurance to donors that a joint mechanism deal will be signed with the LTTE for Tsunami reconstruction while admitting that public sector needs urgent reform.

Analysts however say the government might have to make some painful adjustment before they start talking to donors.

Donors, like the International Monetary Fund that gives balance of payments support and the World Bank that gives budgetary support, do so to back a poverty reduction strategy prepared after talking to many stakeholders.

The government presented an interim document to donors at the forum which they say can become a starting point for discussions about policy.

"The document they presented was a very good beginning.

We believe it would create a basis. Once done more support will come to Sri Lanka," says Praful Patel, World Bank Vi