IMF says Sri Lanka is doing well

  • 26 Feb 2010 14:42:59 GMT

    [The IMF says that it will remain engaged in a constructive dialogue with the government and an IMF team would visit Colombo, following parliamentary elections and the formation of the new cabinet to discuss with the government its plans for a full-year 2010 budget and tax reforms. ]

    Keep going MR. Right on spot.

  • 26 Feb 2010 14:46:44 GMT

  • 26 Feb 2010 14:48:28 GMT

    [UPDATE 1-Sri Lanka inflation hits 1-yr high in Feb

    Fri Feb 26, 2010 5:55pm IST

    COLOMBO, Feb 28 (Reuters) - Inflation in Sri Lanka hit a one-year high in February as low interest rates spurred consumer demand for goods and as commodity prices rose, data showed on Friday.

    Consumer prices rose 6.9 percent this month from year-ago levels, its highest since February 2009 and edging up from last month`s 6.5 percent. Inflation hit a record high of 28.2 percent in June 2008 as global oil prices surged.

    `This is expected,` said Chrishani Ekanayake, an economic consultant at Frands Consultant. `We expect inflation to accelerate further as globally inflation is on the rise and with our imports it will be add to increase in prices.`

    The 12-month moving average inflation was steady at a record low of 3.1 percent this month, the same as January, and analysts expect it to reverse its downward trend from next month onwards. It hit a 6-year high of 23.4 percent in October, 2008.

    Economists surveyed by Reuters -LK/INFL1- had forecast February CPI inflation at 7.5 percent while annual average inflation was seen at 3.1 percent.

    Analysts said inflation will pick up continuously due to a low base effect last year and as consumer spends more due to low interest rates and optimism after the end of the island`s long civil war last year.

    Some analysts expect inflation to quicken if the government under newly re-elected President Mahinda Rajapaksa continues its high spending without fiscal reform to increase state revenues.

    On Thursday, the International Monetary Fund (IMF) said average inflation would stabilise in the high single digits and year-on-year inflation should peak in mid 2010 before reversing in the second half of the year.

    The IMF has delayed the third tranche of a $2.6 billion loan to Sri Lanka after the government missed its 2009 deficit reduction targets.

    The IMF also said it sees little sign of emerging demand-driven inflationary pressures, with Sri Lanka`s bank lending only beginning to rebound slowly and economic growth remaining below its potential.

    The central bank predicts the economy to grow up to 7 percent in 2010, which would be a four year high, after having growth slowed to an eight-year low of around 3.5 percent last year.

    -Reuters

    ]

    Sri Lanka is doing well

    :))

  • 26 Feb 2010 14:50:12 GMT

    [I`M Fccked ... ]

    All the STUPID LTTP Diaspora got FKD on the May 19th and Y you r late to understand that??

    :))

    [IMF? what do they know?? ]

    Nothing!

    :)))))

  • 26 Feb 2010 14:50:41 GMT

    Looks like basil has bought IMF as well :))))

    lankanewsweb already saying basil is already behind Etisalat :)))

  • 26 Feb 2010 14:52:11 GMT

    [IMF delays third tranche of $2.6 bln Sri Lanka loan

    February 26, 2010 08:17 am

    The International Monetary Fund said on Thursday it is delaying the third tranche of a $2.6 billion loan to[[ Sri Lanka after the government missed its 2009 deficit reduction targets.]]

    IMF officials told a news conference that Sri Lanka s domestic budget borrowing -- consistent with a budget deficit target of 7 percent of gross domestic production -- was exceeded by a substantial amount.

    The third tranche will be delayed and completed when the budget is formulated after the election, said Brian Aitken, the IMF mission head to Sri Lanka.

    The third tranche is worth just below $2 billion.

    The central bank had earlier acknowledged that the $40 billion economy likely missed last year s budget deficit goal of 7 percent set by the IMF as a condition for the loan.

    Analysts and economists believe the budget deficit may have exceeded 8.5 percent, close to the 9 percent recorded in 2008.

    The $2.6 billion loan was granted to Sri Lanka to avert a balance of payment crisis following the global economic crisis on condition that it get its spending under control.

    So far, the IMF has released around $650 million to the government based on the fiscal performance of the Indian Oceanisland following the end of its long 25-year civil war last May.

    The IMF has set an even tougher target for Sri Lanka s budget deficit this year at 6 percent of GDP.

    Central bank chief Ajith Nivard Cabraal told Reuters on Tuesday that it would be challenging to meet that level due to high government spending required for post-war reconstruction.

    Sri Lanka s newly re-elected president vowed earlier this month to regain the progress lost in the quarter-century war with Tamil Tigers separatists by boosting the country s economy and unifying its people.

    Mahidna Rajapaksa was re-elected by a landslide on Jan 26.

    Sri Lankawill hold legislative polls on April 8 and the president has postponed the presentation of the budget until those elections are over.

    Reuters

    ]

    Srilanka doing well???

    :))

  • 26 Feb 2010 14:52:37 GMT

    [include private gold holdings india will be number one]

    In its efforts to improve foreign exchange reserves, India has now become the 10th largest gold-holding nation in the world. It has also emerged as the fourth-largest foreign exchange reserves holder only after China, Japan and Russia, says the Economic Survey 2009-10.

    In September last, the International Monetary Fund decided to sell 403.3 tonnes of gold as a central element of its New Income Model` and to increase its resources for lending to low-income countries.

    Consequent of this, the Reserve Bank of India concluded the purchase of 200 tonnes of gold from the IMF at the cost of $6.7 billion as part of its foreign exchange reserves management operation, the survey says.

    With this purchase, gold holdings in the country`s foreign exchange reserves have increased from 357.7 tonnes to 557.7 tonnes, which is about 6 per cent of the reserves. Post-purchase, India has become the 10th largest official gold-holding country in the world, it adds.

    In another interesting development, India is ranked fourth in terms of foreign exchange reserves at $283.5 billion, only behind China ($2,399.2 billion), Japan ($1,049.4 billion) and Russia ($439 billion), says the Economic Survey.

  • 26 Feb 2010 14:56:43 GMT

    I`M FKD is doing a job on Singaliztan.... and Singaliztanis do not know it...!

  • 26 Feb 2010 14:57:41 GMT

    [india has alos the largest gold and silver reserves in the

    world/sorry lanka if you beg might get a few kilo`s of gold ]

  • 26 Feb 2010 14:58:01 GMT

    [I`M FKD is doing a job on Singaliztan.... and Singaliztanis do not know it...!]

    You`re so screwed PEELAM.