Apr 15, 2017

IMF stipulates conditions for balance loan

The International Monetary Fund  (IMF) has imposed several conditions prior to  releasing the third loan instalment to Sri Lanka.

The first condition is that the immediate approval of the Inland Revenue Act.  

Further, the IMF has stipulated that within the next two months $ 200 million should be purchased for the Central Bank reserves.

The Funding Body had decided to forward the recommendations to the IMF Director Board for the release of the third instalment to Sri Lanka after the initial conditions are fulfilled.

According to the IMF stipulation, the government has drafted the Inland Revenue Act and forwarded it to the Legal Draftsman.

However, the Inland Revenue Unions have voiced their protest over this decision.

Further fulfilling the conditions of the IMF, Sri Lanka Central Bank has already purchased around $ 150 million from the open market.