SL to approach IMF for development funding
Sri Lanka is likely to discuss a loan up to one billion dollars with
the International Monetary Fund (IMF) if IMF is willing to provide loans
for budgetary support and infrastructure development activities in the
country, said Treasury Secretary Dr P.B Jayasundara.
Sri Lanka doesn’t need loans from any international donor agencies to
build foreign reserves, and our requirement is to obtain international
loans to support ongoing mega infrastructure development projects in the
country. Dr Jayasundara also said that the IMF cannot find a better
partner than Sri Lanka in the region.
“2012 will probably end with a GDP growth rate of 6.5% to 6.75% and
our best judgment is that it will not be less than 6.5 % for 2012.
What we are more proud is that the country has been able to keep the
inflation down despite the adjustments prevailed during the year and
inflation has been kept around 7 % during the year which is a remarkably
good story for a country like Sri Lanka which had a double digit
inflation for many years,” Dr. Jayasundara said. According to Dr.
Jayasundara, agriculture, livestock, manufacturing sectors and power
generation activities suffered immensely during the third quarter of
2012 as a result of the severe drought which lasted up to November 2012.
As a result, Sri Lanka had to heavily depend on oil imports more than
what is required and third quarter growth was moderated to four and half
percent that time.
However, Dr.Jayasundara says that even though 2012 ended with floods
, the Maha harvest is going to be exceptionally favorable for Sri Lanka
and tea, rubber, fruits and vegetable production are also blessed with
favorable weather. The country has also witnessed a remarkable
turnaround in milk production sector despite the prevailing challenges
to expand storage capacity and to create value added products from
The budget deficit has been targeted to be kept at a 6.2 -6.3 range
and this will reflect the government's capacity to adjust even payments
if necessary to keep the macroeconomic fundamentals. On that ground Sri
Lanka is approaching 2013 with optimism with the economy bouncing back
to 7.5 % GDP growth.