Tuesday, August 17, 2010

Sri Lanka May Not Tap IMF Funds Immediately, Amunugama Says

By Anusha Ondaatjie

Aug. 17 (Bloomberg) -- Sri Lanka may not tap loans from the International Monetary Fund immediately as foreign-exchange reserves have climbed to a record, Deputy Finance Minister Sarath Amunugama said.

“We don’t want to draw down at this stage and accumulate unnecessary debt, even at concessionary terms,” Amunugama said in a telephone interview today from the capital, Colombo. “We have enough foreign exchange now.”

The Washington-based lender on June 28 approved the release of about $408 million to Sri Lanka under a $2.5 billion standby loan program approved in July 2009. The IMF has so far lent about $1.02 billion.

The island nation turned to the IMF last year to replenish its foreign-exchange reserves. They have since risen to an unprecedented $5.8 billion amid aid and investment flows.

To contact the reporter on this story: Anusha Ondaatjie in Colombo at anushao@bloomberg.net

source - http://noir.bloomberg.com

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