IMF loan will be on concessionary rates - Minister

Uditha Kumarasinghe and Irangika Range

Finance and State Revenue Minister Ranjith Siyambalapitiya told Parliament yesterday it is advantageous to obtain this IMF loan at a concessionary rate in the prevailing economic environment.

The Minister said the entire world is battered by the severe financial crisis.

"Therefore, this will be the best opportunity for Sri Lanka to obtain this loan on a low interest rate," he said.

He said the interest rate would be below two percent for this loan.

"Sri Lanka is unable to pay high interest rates for commercial loans as it is a middle income earning country.

"A number of international financial institutions have also failed to provide loans as a result of the global financial crisis," he said.

The Minister said it is necessary to obtain foreign loans at this time as a number of development projects are on going in the North and the East.

"This money will be used to enhance the resettlement and rehabilitation process in the North and the East," he said. The Minister said Sri Lanka is also battered by the global economic crisis like many other countries.

"But we will not place any burdens on the people due to this reason," he said.

"Once terrorism is eliminated, the country will march towards success and prosperity," he said.

He said the Government will not hide the fact of the IMF loan. He stressed that the loan will be obtained according to the policies of the Mahinda Chintanaya.

Several discussion rounds are being held with the Executive Committee of the IMF these days. It is expected to conclude the discussions by the end of March.

He said it is appreciated that the IMF has come forward to assist Sri Lanka despite the challenges posed by the world financial crisis.