US never threatened to block IMF loan

Charge d' affaires of the U. S. Embassy James Moore called at his request on Dr. Palitha Kohona, Secretary, Foreign Affairs today and wished to clarify the U.S. position regarding the IMF loan facility to Sri Lanka.

A press release issued by the Foreign Affairs Ministry said: "Moore stated that the U. S. Government has on no occasion, either publicly or privately, threatened to block the IMF loan to Sri Lanka on political grounds.

He explained that the decision will be taken by the Executive Board of the IMF, of which U. S. is a member, based only on economic criteria and not political factors. He also added that the U. S. Government and other members of the Board will review and consider the loan on financial and economic criteria after such time when the Government of Sri Lanka submits the Letter of Intent to the IMF."