Tuesday, 17 August 2010 12:11
Sri Lanka May Not Tap IMF Funds Immediately on Reserves, Amunugama Says
By Anusha Ondaatjie - Aug 17, 2010 (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.