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Asian Tribune is published by World Institute For Asian Studies|Powered by WIAS Vol. 12 No. 2679

Miliband snubbed for interference in Sri Lanka’s IMF Loan issue

Hilary Rajakarunanayake, Editor – Sri Lanka, Asian Tribune

Colombo, 17 May, ( David Milband has beenDavid MilbandDavid Milband snubbed for his interference in the Sri Lanka’s IMF loan issue. Also his knowledge of Sri Lanka has been questioned.

The Central Bank of Sri Lanka has expressed its s deep distressed over the recent media reports, where David Miliband, the Foreign Secretary of the United Kingdom have "raised doubts about whether Colombo could be trusted to use a US$ 1.9 billion loan from the IMF appropriately," points out a communiqué issued by the Economic Research Department of the Central Bank of Sri Lanka.

"For the purposes of record, the Central Bank wishes to state that during the past 25 years, the IMF has granted nine loans to the Central Bank of Sri Lanka and the Bank has utilized all such IMF facilities very honorably in strict compliance with the terms of disbursement, and repaid such facilities without a single default. In fact, Sri Lanka has never delayed or defaulted on any loan, and consequently, has maintained an unblemished record of debt servicing.

In that context, Miliband’s alleged statement is very unfortunate and disturbing, since it casts a slur on the impeccable debt servicing record of the Central Bank of Sri Lanka, as well as Sri Lanka’s deep commitment to meeting its obligations," the communiqué said.

Media reports also indicate that UK Foreign Secretary Miliband has stated that whether the Government of Sri Lanka should be "able to show that it will use any IMF money in a responsible and appropriate way", and that he "does not think that’s yet the case".

"This comment, while being unfortunate, displays lack of basic knowledge, since IMF facilities are made available only to monetary authorities/central banks for balance of payment support purposes, and hence the contention that the government would utilize IMF money does not arise," the communiqué adds.

- Asian Tribune -

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