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The International Monetary Fund on Tuesday said it will disburse to Sri Lanka SDR 137.8 million (about $ 218.3 million), bringing total disbursements under the Stand By Arrangement to an amount equivalent to SDR 1.10 billion (about $ 1.75 billion). This follows the completion of the sixth review of Sri Lanka's economic performance under a program supported by the Arrangement.
The IMF Executive Board also approved a waiver of applicability for the three end-March performance criterions on net international reserve target, reserve money and net domestic financing of the central government.
A rephasing of the remaining disbursements was also approved by the Board. IMF country director, Mr Koshy Mathai, said that this meant that the review will be held every half-year and not every quarter.
The SBA was approved on July 24, 2009, for an amount equivalent to SDR 1.65 billion (about $ 2.62 billion), or 400 per cent of Sri Lanka's quota.
Addressing presspersons here, Dr Mathai said that he felt that price increases in petroleum products made a few days ago, was “painful but sort of necessary.” Though this would have an effect on inflation, he said that he was confident that this will even out later during the year.
At this point, there was no need for a change in monetary policy of the Bank, he said, but added that the situation had to be watched carefully.
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