Favourable macro economic development:
Stable growth in financial industry:
The conclusion of the review allows the immediate payment of an amount comparable to Special Drawing Rights (SDR) 137.8 million or US $ 218.3 million bringing entire disbursements under the arrangement to a sum equivalent to SDR 1.10 billion or about US $ 1.75 billion. The Executive Board also approved a waiver of applicability for the three end-March performance criteria such as the net international reserve target, reserve money and the net domestic financing of the central government. “A re-phasing of the remaining disbursements was also approved by the Board,” IMF Country Representative Dr Koshy Mathai said yesterday.
Dr Mathai said the IMF was able to spot favourable macroeconomic development in Sri Lanka along with strong growth continuing. The country’s economy is making further progress under the Fund-supported program. Inflation remains in a single digit, and reserves are at a comfortable level. Fiscal position in the country is on the right track and stable growth can be seen in the financial industry. Authorities are also planning to deepen the market opportunities.
Read moreHe expressed confidence that the impact of the recent heavy rains and flooding is expected to be limited due to the given size and strength of the economy.
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| Dr Koshy Mathai Picture by Thushara Fernando |
Budget targets of 2010 have been met and budget developments so far in 2011 are broadly in line with expectations. It is expected to handle flood-related expenses by reallocating and reprioritizing expenditure within the existing budget by the authorities and this would help to maintain the program’s deficit target for 2011, Dr Mathai said.
Two more tranches will complete the entire IMF SBA and these are to be presented around mid July and the early part of next year.
Daily News by Indunil HEWAGE
