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Ceylon Finance Today: Sri Lanka can seek over US$ three billion of fresh International Monetary Fund (IMF) assistance to boost its external account, Central Bank of Sri Lanka (CBSL) governor Arjuna Mahendran told Ceylon FT.
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Ceylontoday, 2015-12-11 02:05:00 Read 418 Times
SL can seek $6B WB, IMF aid
By Ishara Gamage
Ceylon Finance Today: Sri Lanka can seek over US$ three billion of fresh International Monetary Fund (IMF) assistance to boost its external account, Central Bank of Sri Lanka (CBSL) governor Arjuna Mahendran told Ceylon FT.
Sri Lanka is entitled to apply to 600% from the IMF General Resources Account's SDR 413.40 million quota as 'SBA'. In 2009 IMF approved a US$ 2.6 billion SBA for Sri Lanka, of which the current outstanding value is around SDR 499.53million or 120.83% of its quota. As per the latest IMF statistics, Sri Lanka has the capacity to apply for at least another US$ 3.4 billion in fresh IMF assistance.
Mahendran said, very soon they will start discussions with the IMF for a new 'standby arrangement (SBA)'.
This will be in addition to a US$ 600 million World Bank (WB) budgetary support programme which is currently being finalized by the Finance Ministry and the WB, he said.
Mahendran said that Sri Lanka can seek a further $ one to two billion additional WB funding as budgetary support/ low cost development assistance.
"Our external account is strong at least up to next March. We need an additional support March on wards....," the Governor said.
Speaking about the country's reserves position, he said, "Under a liberalized exchange rate (ER) regime we don't have to worry much about the reserves position. We rarely intervene in the market. Global oil prices have come down."
He said, the current ER pressure is merely due to the weakness of non US$ currencies like the Indian rupee.
According to international media reports, Currency markets globally are trading sideways, ahead of the much-anticipated policy review by the US Fed next week, where the US central bank is likely to announce a hike in interest rate for the first time in after more than nine years.
"We are eagerly awaiting the US Fed decision next week. We have to re-examine all our plans according to the outcome," said Mahendran.
"But It all depends on the country's year end financial status," governor said.
The SBA framework allows IMF to respond quickly to countries' external financing needs, and to support policies designed to help them emerge from crisis and restore sustainable growth. All member countries facing external financing needs are eligible for SBAs subject to IMF policies.
The Prime Minister recently said the ongoing war against the Islamic State in Syria and the inclusion of the Chinese currency in the IMF's reserve currency basket "are going to impact us and the rest of the world economically"
inShare
Ceylontoday, 2015-12-11 02:05:00 Read 418 Times
SL can seek $6B WB, IMF aid
By Ishara Gamage
Ceylon Finance Today: Sri Lanka can seek over US$ three billion of fresh International Monetary Fund (IMF) assistance to boost its external account, Central Bank of Sri Lanka (CBSL) governor Arjuna Mahendran told Ceylon FT.
Sri Lanka is entitled to apply to 600% from the IMF General Resources Account's SDR 413.40 million quota as 'SBA'. In 2009 IMF approved a US$ 2.6 billion SBA for Sri Lanka, of which the current outstanding value is around SDR 499.53million or 120.83% of its quota. As per the latest IMF statistics, Sri Lanka has the capacity to apply for at least another US$ 3.4 billion in fresh IMF assistance.
Mahendran said, very soon they will start discussions with the IMF for a new 'standby arrangement (SBA)'.
This will be in addition to a US$ 600 million World Bank (WB) budgetary support programme which is currently being finalized by the Finance Ministry and the WB, he said.
Mahendran said that Sri Lanka can seek a further $ one to two billion additional WB funding as budgetary support/ low cost development assistance.
"Our external account is strong at least up to next March. We need an additional support March on wards....," the Governor said.
Speaking about the country's reserves position, he said, "Under a liberalized exchange rate (ER) regime we don't have to worry much about the reserves position. We rarely intervene in the market. Global oil prices have come down."
He said, the current ER pressure is merely due to the weakness of non US$ currencies like the Indian rupee.
According to international media reports, Currency markets globally are trading sideways, ahead of the much-anticipated policy review by the US Fed next week, where the US central bank is likely to announce a hike in interest rate for the first time in after more than nine years.
"We are eagerly awaiting the US Fed decision next week. We have to re-examine all our plans according to the outcome," said Mahendran.
"But It all depends on the country's year end financial status," governor said.
The SBA framework allows IMF to respond quickly to countries' external financing needs, and to support policies designed to help them emerge from crisis and restore sustainable growth. All member countries facing external financing needs are eligible for SBAs subject to IMF policies.
The Prime Minister recently said the ongoing war against the Islamic State in Syria and the inclusion of the Chinese currency in the IMF's reserve currency basket "are going to impact us and the rest of the world economically"
