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Anura Kumara says IMF will present 3 conditions

15 Dec 2021

 By Ruwani Fonseka  Approaching the International Monetary Fund (IMF) needs to be done with great caution, according to Janatha Vimukthi Peramuna (JVP) Leader Anura Kumara Dissanayake. He made this statement during a media brief on Monday (13). “If we approach the IMF, they will present three conditions before us. First, they will ask us to let the rupee float. Secondly, they will say that they represent the free world market, and they will ask us to remove all the import restrictions we have placed, and vehicles will be imported to Sri Lanka. Thirdly, they will ask the Government to reduce the expenditure, limit the appointments, and cut down the concessions. They will say that our state institutions will have to be converted to profit-making enterprises. These conditions will interrupt the lives of the general public,” said Dissanayake. He added that approaching the IMF needs to be looked into extensively before weighing the pros and cons of requesting aid from the IMF. “This decision needs to be taken by the Central Bank and the Department of State Finance. They must assess the dangers and make a decision. They have to analyse this matter with great caution,” he said. Dissanayake further emphasised the importance of the migrant workers who have in the past supported the foreign reserves through exchange and how it has not been the same this year. “Our migrant workers brought in remittances of over $ 7.8 billion within the last year alone. We did not receive that amount this year. What happens when the IMF is approached is that they bestow their faith into the asking nation, and small loans are approved with the intention of getting the loans repaid. Out of the $ 6.7 billion we have received as loans for projects, we have only $ 1.5 billion as sovereign bonds in the country now. The Hambantota Port was built with loans, and now it is sold to the Chinese as we could not repay the loan,” said Dissanayake. He concluded by suggesting that migrant workers and Sri Lankan businessmen abroad should be encouraged to come back to Sri Lanka to invest, which would help boost the economy.


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