Relief Aid

Immediate financial aid from IMF

The IMF has praised the government for its success in the first phase of the post- tsunami recovery process. IMF First Deputy Managing Director Anne O. Krueger addressing journalists at the Conclusion of her Visit to Sri Lanka said, "What has been achieved so far is impressive and progress in the first phase of the recovery is well advanced. The courage and the determination of the Sri Lankan people and the government is laudable".

The IMF is also ready to grant immediate financial assistance as requested by the Sri Lankan government. The amount of the IMF assistance is about US$ 160 million - on concessional terms.

She said that the Fund's main role in the aftermath of disasters is to help countries maintain macroeconomic balance and financial stability. For this the Fund has already approved an extension in the repayment schedule of previous assistance provided to Sri Lanka which will have the effect of reducing debt service payments by about $114 million this year.

"The Fund is also willing to provide technical assistance to the Sri Lankan authorities if it is helpful as they seek to assess the macroeconomic impact of the tragedy, and the budgetary and balance of payments needs that might arise as a result of the disaster.
She said that Sri Lanka and the Maldives have suffered the largest macro economic impact due to the tsunami that devastated so many countries. An IMF team would be dispatched from Washington at the appropriate moment," she said.
Krueger also said that the Fund stands ready to resume discussions on an economic recovery program that can be supported under the Poverty Reduction and Growth Facility once the immediate tasks of humanitarian relief and reconstruction planning have been addressed.

Anne Krueger also had discussions with President Chandrika Kumaratunga, Minister Sarath Amunugama, Governor Sunil Mendis and other senior ministers and officials during her visit. She emphasized that the Fund stands ready to do whatever is appropriate to help in the recovery effort of Sri Lanka.