Posted on 03.02.2019 by Chandana Sirimalwatte in Local News with 0 Comments
It is reported that the government has requested the IMF to have extra period to pay off 1.5 billions loan. The reason for the expected extension from the government side is, they say expenses for the up coming elections.
According to the IMF criteria for issuing funds, Sri Lanka must keep 3.5 budget differences from the gross domestic products (GDP) but the government is speculating that they won’t be able to keep that difference up as they do have to give more relieve to the people to grab their votes in the up coming elections. So the government has reportedly asked from the IMF to extend the pay off time limit from 2020 to 2021. The IMF has not so far responded for this request until the discussion regarding this request to be over by next Thursday.
After Yahapalana government came to the power in 2015, they held talks with IMF and as a result of that, IMF issued 1.5 billions in 2016 June. This loan was supposed to give within three years as six installments. So far the IMF has given 750 million dollars and the last installment to be released on last term of the last year. However, due-to the political impasse irrupted in Sri Lanka from last November, caused the postponement of releasing the last installment but now, The IMF officers came here to hold the discussion to release the last installment as they think the country’s political condition is stable.
It seems that the government is trying to bring a relieved budget before the election to increase their vote base, that is why they try to extend their payment for the IMF.