Central Bank Governor Ajith Nivard Cabraal said on Friday that the third tranche of the US$2.6 billion Stand-by Agreement of the International Monetary Fund (IMF) is expected in May or early June 2010. Speaking to the Sunday Times in Jaffna on the sidelines of an official function, Mr. Cabraal said the IMF mission is also expected in Sri Lanka prior to the release of the third tranche.
Mr. Cabraal added that the government’s decision to have a vote-on-account in lieu of the standard budget for the year will not be a factor in the IMF’s decision on releasing the third tranche. The first two tranches amounting to approximately US$323 million each, were released in July 2009 when the SBA was first approved by the IMF Executive Board, and the second in November 2009. The third tranche which was due in March 2010 was held up following a visit by an IMF mission led by Brian Aitken.