Sri Lanka News Updates with Discussions

IMF spokesperson Caroline Atkinson said Friday 'whenever there is final agreement, then a program would go to the Executive Board.'
Last month Atkinson said she expected the loan of at least 1.9 billion US dollars to be approved within 'weeks'.

The loan had been delayed as it awaited approval from the US Treasury, which also consults other agencies, including the State Department, which is yet to approve the loan.

The US executive director votes on the loan after receiving a report from the international monetary affairs office of the Treasury. The US has to biggest share of votes in the IMF.

Aiyoo, Is IMF Loan not coming up ?

:-((

ChennaiMadaya...
Good morning!

some of the officials have succeeded in keeping the media hype alive with an information overload. There has been a feeding frenzy to the Sri Lankan public by SMS operators who are billed to give breaking news . The story on the proposed IMF loan perhaps is a record. This breaking news about the loan coming in a week, two weeks or three from top sources has been played again and again. The only difference is that the loan is yet to come. The reality, is quite different. Firstly, IMF board of directors has not yet taken a decision to extend the facility to Sri Lanka. The reason is just simple. For them to determine such a request, they are yet to receive officially a Letter of Intent. That is from Sri Lanka s Minister of Finance, in this instance none other than President Mahinda Rajapaksa. That procedure has to be gone through before the matter goes to the IMF board of directors.

It is true that the IMF has been pleased that some of the fiscal controls it wanted, have been effectively implemented by the Government of Sri Lanka. However, Government sources say, President Rajapaksa is not inclined to place his signature on such a Letter of Intent if he is not sure the loan is forthcoming. One could argue that the letter is a mere formality in the light of behind-the-scene exchanges but it shows there are a few more paces to go. Thus, the fact remains that the loan is yet to be formally approved. Without that, saying it is round the corner is of no avail.

Added to that is the GSP plus the concessionary apparel exports facility the European Union has extended to Sri Lanka. Countries of the EU were in the front line to move a special resolution last month against Sri Lanka at the United Nations Human Rights Council (UNHRC) in Geneva. Their pronouncements have added to the uncertainty that the EU would extend the concessionary facility after December this year. There are fears that they would use human rights issues as the main reason. Such a move, as already feared, would throw thousands in the apparel industry out of employment and force the closure factories.

Sansare, which part of AUS you are from?

http://www.lankanewspapers.com/news/2009/6/45033.html

http://www.lankanewspapers.com/news/2009/6/45061_space.html

And why Tamils are burning Indian flags in Chennai??

why Tamils are burning Indian flags in Chennai??