Govt. expects the first tranche of IMF funds this week

By Sandun A Jayasekera  

The first tranche of US$ 330 million out of the Extended Fund Facility (EFF) of US$ 2.9 billion for Sri Lanka from the International Monetary Fund (IMF) is expected this week once the Global lender approves the EFF today, government spokesman, Minister Dr. Bandula Gunawardana said.

At the same time, he accused that the main objective of the strike launched by a cross section of trade unions was not to win demands but to sabotage the government’s eagerly anticipated programme to obtain IMF assistance.

Explaining the government’s strategy after the IMF released the first tranche of the EFF of US$ 2.9 billion, Minister Gunawardana said the government expects further financial assistance from the ADB, the World Bank, and JICA fattening Sri Lanka’s foreign reserves to nearly US$ 10 billion. This will help to further appreciate the rupee, drop CoL ratio to a single digit and improve confidence on Sri Lanka among global financial agencies, creditors and investors which will usher in a booming economy. The first and foremost beneficiaries of the resurgence of the economy will be public servants. Therefore, they must be patient for another few months to enjoy the dividends of the government’s economic policy, he added.  

Minister  Gunawardana said the IMF board is scheduled to meet and approve the EFF for Sri Lanka on March 20th. The ongoing trade union action is aimed at undermining the IMF programme.   

The trade union action by teachers demanding the increase of payments for marking the GCE A/L answer scripts to Rs 3,000 came under heavy criticism by Minister  Gunawardana who said the demand was extremely unfair, indecent and treacherous.  

He made an appeal to striking trade unions not to engage in treason and acts of betrayal by demanding unfair demands at this difficult time and added the government would pass the benefits of expected economic boom in full to the public in the next few months.