|
English.news.cn 2013-02-13 19:55:42
|
|
COLOMBO, Feb. 13 (Xinhua) -- A range of reforms
have been recommended by the International Monetary Fund (IMF) to the Sri
Lankan government urging fiscal consolidation, following the announcement that
the two entities will not sign on a fresh loan to fund the island's post war
development, an official said here on Wednesday.
IMF delegation head John Nelmes confirmed to
media that discussions on obtaining a fresh loan had not borne fruit but he
insisted that engagement with the Sri Lankan government would continue.
Sri Lanka was negotiating for a 1-1.5
billion-U.S. dollar loan to fund budgetary needs including massive
infrastructure projects, according to Finance Secretary Dr. P.B. Jayasundara.
However, Nelmes noted that since Sri Lanka's
external reserves remained healthy after a 2.6 billion-U.S. dollar Stand By
Agreement (SBA) completed with the IMF last year, there was little need for
extra funds.
"We recognize here that Sri Lanka has made
notable progress in a number of areas over recent years. During an Article IV
consultation we take a step back for a much broader perspective. Progress has
been notable in many areas, growth has been quite robust over the last few
years... and stepping back from a broader perspective these are all welcome
developments," he said.
Nonetheless, he called on the government to
implement significant reforms such as tax administration, reduction of losses from
state owned enterprises and promotion of exports to strengthen revenue streams.
Nelmes hinted that the IMF and the Sri Lankan
government were unable to agree on a timeline for the implementation of
reforms, which was a contributing factor for Sri Lanka not getting a fresh
loan.
"There is no single make or break
issue," he remarked. But faced with a string of questions from the media,
he admitted "that element was also there."
Sri Lanka has targeted an ambitious 5.8 percent
budget deficit for 2013, which Nelmes described as challenging but stressed
that it was necessary to keep the country on a sound economic footing.
Sri Lanka's central bank has set a growth rate
of 7.5 percent for 2013, but IMF predictions put it at 6.25 percent.
|
Editor: Lu Hui
|
