No conditions imposed by IMF - Dr Amunugama

Sandasen MARASINGHE and Irangika RANGE

Deputy Finance Minister Dr Sarath Amunugama said yesterday the International Monetary Fund (IMF) has not imposed any conditions when it granted loans to Sri Lanka as alleged by the Opposition.

On the contrary, the IMF agreed to the conditions presented by the Government, he said.

He made this observation in response to an adjournment motion moved by UNP MP Ravi Karunanayake that the prices of certain commodities have increased during the last several days.

The Minister said there was no question of the Government being subservient to the IMF.

The Deputy Finance Minister said the IMF has granted US $ 65.2 million and it is given in eight instalments. Three instalments have been received by the Government, Dr Amunugama said. Even at the worst of times, the IMF never spoke of internal matters such as Budgets or Vote on Account.

This loan was given to many countries in the region including Pakistan and India to ease the economic crisis caused by the global economic crisis, Dr Amunugama said. He said we have to be patient and realistic.

UPFA MP Vasudeva Nanayakkara said the Government has given priority to improve the service sector.

"We are only concerned about providing relief to the people and not earning profits. Around 53 million of the population in the world suffer from poverty today. We were battered largely by the world economic crisis," Nanayakkara said.

"We as a developing country should have freedom to decide from whom we should obtain loans without being dominated by the influences. We obtained Rs 652 billion from the IMF at the average rate," he said.