Minister refutes UNP claims on IMF loan

Chaminda PERERA

Media and Information Minister Anura Priyadharshana Yapa yesterday refuted UNP claims that the Government has agreed to comply with various conditions to secure a loan from the International Monetary Fund (IMF).

Addressing the weekly Cabinet press briefing, the Minister said the IMF has not put forward any condition for the loan.

The economy of the G20 countries had collapsed due to the current economic recession. But Sri Lanka's economy is stable due to the vibrant and dynamic economic policies followed by the Government, he said.

"We maintained a very balanced economic policy which brought us Foreign Direct Investment worth over US $ 180 million last year," the Minister added.

"Sri Lanka would have faced the worst financial crisis, if the liberal economic policies of the UNF Government were implemented in the country, Minister Yapa maintained.

UNP leader Ranil Wickremesinghe attempted to introduce the liberal economic policies under the pretext of Regaining Sri Lanka.

"The UNF's liberal economic policies have proved futile and the country would have been badly affected if their policies were implemented," the Minister observed.

"The UNP prepared the ground for privatising government ventures through the Regaining Sri Lanka. Recruitment to the public service was stopped and its strength was curtailed by one third by introducing various retirement schemes," the Minister said.

"The UNP leader during his tenure as Prime Minister was of the opinion that the private sector should be strengthened. The country would have lost billions of rupees if the Tax Amnesty Bill presented by the UNP to Parliament was implemented.

The UNP through the introduction of tax concessions, attempted to grant enormous tax concession to business tycoons who evaded paying taxes, he said.

The Minister said the Customs and Inland Revenue Departments were about to be privatised when the Finance Ministry was taken over by the then Government.

Even the United States has deviated from liberal economic policies and adopted a policy which lay more emphasis on promoting local industries and a controlled economy, the Minister said.