The International Monetary Fund (IMF) will lend Sri Lanka about $ 216.6 million following the completion of a review of the country’s economy.
On February 2, the IMF completed the fifth review of Sri Lanka's economic performance under a programme supported by a Stand-By Arrangement (SBA). The completion of the review enables the immediate disbursement of the loan bringing total disbursements under the arrangement to $1.516 billion.
“The Sri Lankan authorities have made good progress under the Fund-supported programme and macroeconomic developments continue to be favourable. Growth is strengthening; inflation remains in check, despite some pressure in food and energy prices; and imports have recovered. With strong remittance inflows, gross reserves remain at comfortable levels,” said Naoyuki Shinohara, Deputy Managing Director and Acting Chair.
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On February 1, the Sri Lankan Central Bank said that inflation decreased to 6.8 per cent in January 2011, on a year-on-year basis, from 6.9 per cent in December 2010. Meanwhile, the annual average inflation increased to 6 per cent in January from 5.9 per cent in the previous month, as a result of the price developments in the preceding twelve month period. The core inflation, which measures the price movement of non-food and non-energy items of the CCPI basket, decreased to 3.6 per cent on a year-on-year basis and 6.0 per cent on an annual average basis in January 2011 from that of 5.6 per cent and 6.3 per cent respectively, in December 2010.