Govt did not comply to any IMF conditions - Minister

Chaminda PERERA

Media and Information Minister Anura Priyadarshana Yapa yesterday said the Government reached an agreement with the International Monetary Fund (IMF) to implement certain factors which would ensure the country's economic progress and it did not comply to any condition laid out by the IMF in obtaining the US$ 2.5 standby facility.

Addressing the weekly Cabinet press at the Information Ministry, the Minister said the factors which the Government agreed with the IMF have already been implemented by the Government under its strategical approach to solve the country's economic woes.

"The Government agreed with the IMF to follow practical and pragmatic policies such as exemption of tax on Letter of Credit, revision of Nation Building Tax and maintain the budget deficit at five percent by 2011," he said.

Minister Yapa said the IMF has focused on the Government's vibrant economic policies in providing the standby facility to the country. "This is the biggest fund the Government has received from the IMF since the country gained IMF membership in 1950. "We will not slash any privileges enjoyed by the people of this country," the Minister stressed.

The UNP Government throughout their history has complied to adverse conditions laid out by the IMF. The UNF Government headed by UNP Leader Ranil Wickremesinghe implemented detrimental economic policies to attract IMF funds to the country.

Enterprising Government ventures such as Sri Lanka Insurance Corporation and the Cooperative Wholesale Establishment were privatised in compliance with IMF conditions.

Sri Lanka: Latest IMF Financial Arrangements
		Date of 	Expiration 	Amount Approved	Amount Drawn
Type 		Arrangement 	Date 		(SDR Million) 	(SDR Million)    
EFF		Apr 18, 2003	Apr 17, 2006	144.40		20.67
PRGF		Apr 18, 2003	Apr 17, 2006	269.00		38.39
Stand-By	Apr 20, 2001	Sep 19, 2002	200.00		200.00