No harsh conditions in IMF loan - State Revenue Minister

Uditha Kumarasinghe and Irangika Range

Finance and State Revenue Minister Ranjith Siyambalapitiya told Parliament yesterday that the agreement reached by the Government with the IMF to obtain the US$ 2.6 billion loan fully complies with the policies of the Mahinda Chintana.

"The Government has categorically stressed to the IMF that any State property will not be privatised to obtain this IMF credit facility," he said.

"The loan will further strengthen present and future development activities planned by the Government under Mahinda Chintana," he said.

The Minister said the Government has not agreed with the IMF to curtail subsidies or privatise non-profitable State institutions such as the CEB or CPC.

"In addition, we have no intention to put any additional tax burden on the people as a result of obtaining this IMF loan," he said.

The Minister responding to an adjournment motion moved by the JVP MP Sunil Hadunnetti on the IMF loan obtained by the Government said the Government has been able to fulfil all the key responsibilities and welfare activities which have to be fulfilled by a people's friendly Government.

As a result, the Government could achieve a considerable economic growth by the end of August, 2008.

The country achieved a six percent economic growth and 10 percent export growth by the end of August, 2008.

During this same period the country's foreign reserves increased to US$ 355.7 million while investments in Treasury Bills went upto US$ 52.7 million.

In addition, the unemployment rate has slightly decreased and the Government has been able to reach its set State revenue targets," Siyambalapitiya said.