IMF gives Sri Lanka $427 million loan
The International Monetary Fund on Monday approved a $427 million loan for Sri Lanka, hoping to shore up government coffers that have been ravaged by a massive trade deficit.
The Washington-based lender said that Sri Lanka’s economic recovery continued in 2011, but easy access to credit and a rigid exchange rate had helped extend long-running trade imbalances.
Last year’s trade deficit hit nearly $10 billion, or a fifth of the country’s GDP, imposing a massive strain on the country’s dwindling foreign reserves and leaving the island exposed to external shocks.
Since 2009 the IMF has lent Sri Lanka $2.13 billion in an effort to reform the country’s economy and improve the government’s budget in the wake of a four decades-long ethic war.
The country’s foreign currency reserves have been decimated, leaving little cash on hand for a government that is also running a high budget deficit.
“The authorities have recently introduced a broad package of measures,” noted the IMF’s Min Zhu.
The government has allowed the rupee to depreciate and slapped credit ceilings on commercial banks to discourage loans that could fuel further imports.
The country needs to borrow heavily to finance the trade deficit and repay debt which could push the country into a vicious debt cycle, experts warn. The government has insisted, however, that it does not risk a sovereign default.
AFP
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I 100% assure that,from $427 million, half of the amount goes to minister’s pockets.That is true.
In this country innocent people think that they are gaining and achieving some thing for their villages,towns and especially reconstructing roads and lanes and some town developments,ya but those not the actual intention of the government and the area ministers.
what they do is like total funds will be transferred for certain commitments to the Government related banks, from that monetary, ministers related to that ministry divides that monetary fund in to two and put one portion in their secret pockets and works will be done for the rest of the portion amount.
Vigilant security and investigation service that is located in colombo is simply sitting, as because Vigilant security investigation service is totally under control of
Sri lanka Government.
If this vigilance act solely like some other countries especially india. we could see some sort of cases happened in india like 2G specterm case the most successful case recovered by the Vigilance, Government auditors and the CBI.
Like wise in our nation there are CBI’s, Vigilance and Gov audits but all are inactive and death.
So Sri Lankan ministers think that these kind’s of investigations will not affect us because we are the ruling party.
So ladies and gentlemen just think how come our nation stand firmly infornt of other countries??
We can see the ministers vehicles,there are no taxes to be applied but those taxes are applicable for the people who trusted and voted.
Let them off ministers family but their relations ??? how many vehicles? modern houses? business firms every where!!!! from where are these facilities??? all are from innovent people who were elected them.
But all taxes and the hikes will only apply for the ordinary citizens of Sri lanka.
In this summer time ministers relax in Airconditioned houses but what about our selfs???
They put their children in foreign schools but ????? we???
from where did they seek money for them.
ALL ARE FROM THESE KINDS OF MONETARY FUNDS