| News |
||||
| IMF
gives Lanka 100 % - Choksy This credit facility for the government's 2003-2006 economic programme is equivalent to 100 percent of Sri Lanka's quota in the IMF as requested by Finance Minister Choksy in the detailed economic and investment programme of Sri Lanka for the period 2003-2006, which was forwarded to IMF Managing Director Herst Kohler in February. The IMF also endorsed the programme put forward in the Finance Minister's economic and investment programme and the 'Regaining Sri Lanka' programme for development of the rural sector, increasing avenues of self-employment, and thereby rectifying the disparity that exists in Sri Lanka between the rural and urban areas, Mr. Choksy said. It also recognised several financial reforms such as the Fiscal Responsibility Law and the Welfare Benefit Law initiated in Parliament by the Ministries of Finance and Policy Development. These laws will rationalise benefit schemes such as Samurdhi to ensure that they were not merely handouts but were channelled towards the training of educated youth in areas of self-employment, Mr. Choksy told The Sunday Times. "The grant by the IMF of Sri Lanka's full quota was an achievement in as much as the IMF had in mid-2001 suspended aid to the People's Alliance government under the Standby Agreement as it was not satisfied with the then-government's record of implementation of reform programmes," he said. The Board member for France had expressed concern that the peace agreement was not yet finalised but stated that his country was supporting the grant to Sri Lanka because France was satisfied that Sri Lanka would achieve its goals considering its progress up to date, Mr. Choksy said. The IMF Board decision was the outcome of several discussions which took place in Sri Lanka between visiting IMF teams and the Finance Ministry at which the government's programmes for financial and economic reform were identified and benchmarked to agreed dates for achievement. The IMF resident mission in Sri Lanka will monitor the government's delivery on due dates of the undertaken. Of the full amount granted a sum of $369 million is available under a Poverty Reduction and Growth Facility (PRGF) and the balance $198 million under an Extended Fund Facility (EFF). The granting of this Extended Facility was discussed between Prime Minister Ranil Wickremesinghe and Finance Minister Choksy when IMF Deputy Managing Director S. Sugisaki visited Sri Lanka in January. The repayment
period for this facility, which supports medium term development
programmes, is 10 years with a four-and-a-half year grace period.
The development programme is broadly for infrastructure development
in areas of power, road development and maintenance, and upgrading
of rural hospitals, Mr. Choksy said. Mr. Sugisaki
told the IMF Board that the government had demonstrated a firm commitment
to financial reform over the past year and that the Finance Ministry
had maintained an exemplary debt servicing record despite financial
constraints. Supply of clean water for domestic use particularly in the southern part of the country is also earmarked for financing, Mr. Choksy said. Another
soldier in Tiger custody |
||||
Copyright © 2001 Wijeya Newspapers
Ltd. All rights reserved. |
