Sri Lanka’s Central Bank Governor Arjuna Mahendran said the government was in “informal consultations” with the International Monetary Fund (IMF) over the possibility of a further loan.
“Yes we are examining the possibilities and the government are in informal consultation with the IMF,” confirmed Mr Mahendran.
However the governor stated, “our reserves are comfortable at this point”. “We have over four and a half months of imports, admittedly some of that is borrowed but the country is in no dire need of emergency funding,” he added.
His comments come as Finance Minister Ravi Karunanayake stated Sri Lanka is “not dictated by IMF policy”.
Earlier this month the IMF warned Sri Lanka’s “economic outlook remains uncertain” and said there was continued weakness in the structure of Sri Lanka’s public finances. It also cited Sri Lanka’s fiscal deficit is a key concern for 2015 and the medium term in their annual report on Sri Lanka.
“Yes we are examining the possibilities and the government are in informal consultation with the IMF,” confirmed Mr Mahendran.
However the governor stated, “our reserves are comfortable at this point”. “We have over four and a half months of imports, admittedly some of that is borrowed but the country is in no dire need of emergency funding,” he added.
His comments come as Finance Minister Ravi Karunanayake stated Sri Lanka is “not dictated by IMF policy”.
Earlier this month the IMF warned Sri Lanka’s “economic outlook remains uncertain” and said there was continued weakness in the structure of Sri Lanka’s public finances. It also cited Sri Lanka’s fiscal deficit is a key concern for 2015 and the medium term in their annual report on Sri Lanka.