27 September, 2020

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IMF Suspends Loans To Sri Lanka Due To Prevailing Political Crisis

The International Monetary Fund (IMF) loan facility to Sri Lanka, approved in mid-2016, has been suspended by the global finance body due to the prevailing political crisis in Sri Lanka.

IMF Chief for Sri Lanka -Manuela Goretti

The loan facility approved Rs. 1.85 billion for Sri Lanka, on the condition of comprehensive economic reforms.

With the unprecedented political turmoil, which began with Mahinda Rajapaksa’s ascension to the post of Prime Minister, the IMF has suspended its loan facility. After assuming office as the Finance Minister of purported government, Mahinda Rajapaksa said the fuel price formula, introduced as part of the economic reforms programme in consultation with the IMF, would be scrapped with immediate effect.

As the purported government has failed to secure a Parliamentary majority, it is unlikely that a budget for 2019 will be presented to Parliament, this month.

Speaking to media two weeks before the political crisis in Sri Lanka, Chief for Sri Lanka Manuela Goretti, said, “Sri Lanka would need a strong 2019 Budget, aiming at further fiscal consolidation, to secure debt on a sustainable downward path and support investor confidence as large debt repayments are coming due.”

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  • 24
    2

    IMF Suspends Loans To Sri Lanka Due To Prevailing Political Crisis

    One wicket down.

    • 3
      16

      rbh

      Hit wicket but reasonable even to be all out as the head umpire is bad.

      • 7
        1

        Real Revolutionist

        There are thousand of spectator to judge this not book cricket

        • 3
          1

          Good riddance of IMF. Please see the Tri-continenetal Institute Newsletter on IMF in Argentina.
          It is IMF, ADB, Japan and US bond market that has put Lanka in a debt trap, and crashing the rupee, in order to asset strip Lanka and beggar the citizens, and turn us into Haiti in the Indian Ocean!
          The covert Cold War Between Trumpland’s CIA and China in Lanka today where Peace Corps are data mining and weaponizing social media, is at the root of the political stand off in Lanka today as Bondscam Ranil was getting ready sell of Lanka’s strategic assets (lands, transport and energy sectors infrastructure) to Washington’s Economic Hit men.
          After fifteen years in the cold, the International Monetary Fund (IMF) returned to Argentina this May. President Mauricio Macri promised to attract foreign direct investment and to make his country the ‘supermarket of the world’. Instead, Argentina’s economy went into a tailspin. The IMF entered with its shop-worn prescriptions, a recipe that it has effectively sold for the past four decades: structural adjustment. We will promise to give you funding and to help you attract investment, the IMF says, if you cut back on State spending on social infrastructure (education and health) and increase measures that are attractive to monopoly capitalism. Target inflation, say the IMF economists, not joblessness and desolation.

          • 0
            0

            Excellent info Dinuk. IMF/World Bank are Zionist Financial Institute. As you have observed in the South American Economic Terrorism carried out by the Zionists are horrendous crimes committed against the humsnity. What we are experiencing in Sri Lanka at present is also a result this Zionist politics. What Maithripala is doing along with the Racist Politics of Rajapakse is a RSS/Modi backed one. Its a 1st step of Modi’s manipulation to prepare for the Sinhala Racist forces to reverse the Good Governance into a total Fascist set up to begin Modi’s Global Anti Muslim project funded by Israel.

    • 8
      2

      rbh ,

      Reverbarations, repercussions of the JR Presidential System, where a madman can tale the country to chaos, well exploited by Mahinda Rajapaksa earlier, and currently exploited by Sririsena and Mahinda Rajapaka.

      The Ghosts of Black July 1983 and the Ghosts of Nandikadal 2009, are watching this Illegal constitutional move by the Para-Sinhala Drama, Nadagama, in the Land of Native Veddah Aethho, illegally occupied by the Paras.

      Illegal all right. After all all the Paras are illegals in the Land of Native Veddah Aethho..

    • 4
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      Also, it is the IMF which supported and helped the Fascist govts of Sri Lanka for many years even when they are committing horrendous crimes against humanity. Always, the Sinhala Only criminals are always encouraged to remain in their racist ideology with money flowing from IMF from which nearly 50% of the funds were openly robbed by the same criminals who are violating the very same constitution that they should be protecting. In the whole world the only HUMAN RIGHTS VIOLATORS who did not get any punishment from even ICJ systems is Sri Lankan Racist Political leaders and their slave henchmen.

    • 4
      1

      One wicket down is a correct estimate. Other wickets will be soon down. There have always been parents (read World Bank, IMF) and relatives to pamper the child from its birth in 1948. Now a distant relative has adopted the child. Her help came with a small pinch off of a few tens of thousands of hectares. The latest hamper is $ 1.5 billion to be frittered away at will and pleasure but the massive pinch lasting pain for 99 years will come on the day of reckoning.

      Pleasure now for this congenital idiot of a never growing child, not ever recalling the fate of Ceaucescu and Romania in 1989.

  • 35
    3

    Thanks to Rajakashes the country would fall from frying pan to the hearth.

    Thanks to blind folded lankens srilanka becoming a somalia in next few months

    Thanks to Sirisena we are all betrayed as never expected in this life.

    • 4
      25

      Where’s the thank for the speaker, the mastermind of everything.

      • 15
        2

        If you are sane, you would have said like that.

        But we know that all that back Ballige putha Rajakashes are sick or stupid

        They dont care about anything but power.

        If anyone witnessed the way Rajakashes rascals went on rampage in the parliament, not even your domestic dog would disagree with us.
        Rajakashe should be imprisoned for all the high crimes they have been upto..
        I wish if they would have been beheaded or stoned to death the way Saudis would do it.
        They deserve to be behind barnot just for few months restof their life times.

      • 6
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        Thanks to your parents, you stay blind folded for ever.. your staple food become THANAKOLA for everm: If a tsunami would take you guys, only, we can think of a better future. Real Revolutionist.

      • 2
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        WW’s conspiracy?

  • 23
    2

    So what would be the response of President of this slaves dominated country to IMF ?

    Why could not he forsee ?

    Instead of achieving it but Rajaakshe highjacked the bugger. It is all because of his spineless and lack of wisdom. Ranil has nothing to do with the fall.

  • 22
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    We need to understand our position in the world. Beggars can’t be choosers.

    For more than 70 years the corrupt blind led the innocent blind.

    It’s time to open our eyes. Understand the real issue is us.

    We are still standing devided for our favorite colours or for our favorite politicians.

    They are standing together and exploiting us using the corrupt media to further devided us.

    We should all stand only for our respective Ideas but not for a person.

    Respect democracy and bow to the idea of the Majority.

    Democracy is a system, an Idea created to stop violence. We all need to fight to secure democracy together.

    • 13
      1

      I am a lanken living in Europe for the last few years.

      I question myself not once serveral dozens of times, why our people would feel above their ground realities. That has lot to do with Rajakashe Philosophy. In order them to be rotten in power, they just spread what they think is right. Mostly, what they have been uttering are beyond blatant lies.

      Lately I had some arguements with Rajapakshe loyalists on us being named after ” MID INCOME EARNING ” how come us being grouped while over 40% of children are seen as malnourished ?
      And just look at those in boarder villages where natural santuaries are, people look as if they are not accessed to the cheapest food item – drinking water. And those villages that suffer from human-elephant conflicts are to everyone’s eye under poverty lines. And if you would please travel to nothern areas, how many of them are under poverty. However to please international bodies, they the Rajakshes had branded us as MIDDLE INCOME EARNING…. in the reality there are over 40% in the country are under poverty line.

      • 2
        1

        So what is the ground reality

    • 2
      1

      So what is the issue

  • 16
    0

    MR might have part with about $1B from the money in his kitty, if the Government is to go ahead. This is the first punch, then comes GSP and other Aid, where more B $ will have to come out

  • 21
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    Looming sovereign debt crisis?….Reckless spending by the king on the world’s emptiest airport and harbour. Over 95% govt revenue spent on debt repayments. No wonder Sirisena wants to give up the fight and go back to the good old days.

  • 20
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    CT

    Don’t worry Rajapaksas will bail out Sri Lanka and sell it to China and Hindians for good price and keep the surplus.

    Look at them how desperate they are to take over the entire country, the brothers, son, KASmalam, cronies, …………… the entire corrupt dynasty and their entourage, courtiers, b***s carriers, ………………

    • 13
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      Dayan Silva is negotiating with Russia for the bail out.

    • 2
      14

      Ado Lansi Vedda,

      That is exactly what should happen. We have been borrowing for 70 years from this group of vampires, and paying interests through our noses, keeping a good portion of the population on a starvation diet, to no result.

      These European and American pale skinned Edomites do not have a soul. They only recognise money.

      Now it is time to try China. At least they don’t try to muck around with our domestic politics like the American and European hooked noses.

      • 4
        0

        You must be crazy. Haven’t you seen the NY Times article

      • 5
        2

        You call them vampires and in the next sentence you want to „try“ China? One host not giving the needed, you change over to the next host? Now who is the vampire here? If the previous government would not have spent billions for useless projects and not misused incoming aid to fill their own pockets, the enormous debts would not have piled up to today’s extent. Sri Lanka cannot rebuild it’s messed up economy and finances without international help now, as a result of this. IMF‘s idea is to let Sri Lanka’s economy recover and build up its own strengths, in order to get over the financial crisis. China is not giving anything for free. It will take over the country piece by piece. Instead of going begging for money and „trying“ your neighbors better get democracy under control and stop bribery, nepotism and corruption in Sri Lanka. Economy will develop on its own and the country won’t be dependent on foreign aid anymore.
        Edomites, and interesting term, by the way. Geographically not quite right as they originate in the area of Israel. But probably used as a synonym for conqueror in your case. An appropriate choice of words for a country that generates a good amount of national income from tourism???

      • 1
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        Mike Banda

        If you got b***s, come inside the parliament boxing ring for a fist fight.

        • 1
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          Ado Lansi Vedda

          I don’t dirty my hands with shit through fist fights with 80 year old pale pieses of skit.

          But I can suggest better ways (through what I have heard form Mano) to get the limp parts of your body going again!

          • 1
            0

            Mike Panda

            “I don’t dirty my hands with shit through fist fights with 80 year old pale pieses of skit.”

            I don’t either, I got one or two who can fix you, some chilli attack, some butter knife postures, some middle finger gestures, water cannon using jar, ………. Why are you scared of entering the Amphitheatre where we do have Bestiarii fighting the lion, fighting the tiger, fighting the pigs, ………………… We did this outside our Amphitheatre, throughout the island in open air theatres, now we have decided to carry it out inside ………………….

            If you got b***s meet me inside.

  • 3
    0

    This comment was removed by a moderator because it didn’t abide by our Comment policy.For more detail see our Comment policy https://www.colombotelegraph.com/index.php/comments-policy-2

  • 13
    1

    see what sirisena has done in addition to the number of tourist bookings cancellations.

  • 10
    1

    Marching orders and the Death KNell for the Village and Towmies Racist, the Punnakku eating Modayas.
    Now they can Run to China Mama and Pawn our country.

  • 7
    1

    This is not a political problem,this is a problem where we might in the worst case scenario, won’t exist as a state.
    Kick out shit sena and get back the country, as if decent people don’t go out in the street, the place to sleep will be streets in other countries for Sri lankens.Like refugees of Zimbabwe, Somali nationals.

  • 5
    1

    Send a memo to Maha Raja, perhaps he and his family can step it, and help out, from their ill gotten gains.

    This is what Sirisena and MR wanted, the nation to be in turmoil, and our international support gone.

  • 1
    3

    C’mon, IMF, it is monetary organizations like yours which direct dependent governments to put unbearable burden on common people and encourage developing countries for imports so that western multinational companies can thrive.
    Upon achieving your own targets, halting your loans to such countries is stupid, as it will directly impact ordinary people who are already struggling.

  • 9
    3

    The Rs:1.85 Billion of the IMF is peanuts compared to the amount siphoned off by MaRa ;
    A Whopping 18 Billion US Dollars!

  • 5
    1

    Please do not release it. It will be wasted on election campaigns

  • 3
    0

    IMF conclude ~ “Sri Lanka would need a strong 2019 Budget,……..support investor confidence as large debt repayments are coming due.”
    IMF should not have done (whatever they did) like a typical banker. This will be interpreted as a blatant threat.
    .
    SLPP will now deploy language/religion-divide
    PLUS threats to our sovereignty
    PLUS ‘mortgage’ to rapacious IMF
    Unbeatable!

  • 4
    0

    No worries, those fools who go behind MR clan will survive on their usual diet of fodder!

  • 3
    5

    So what! Did IMF or any bloody western country suspend their support to Prabhakaran and tamil terrorists or help the country to fight the war against terrorists. Sri Lanka has gone much worse crisis for 30-years, so it will survive this storm in a tea cup after few more weeks. I won’t lose my sleep over it.

  • 5
    0

    love this. I do remember standing in queue for long time to buy bread those days between 70 to 77. Ya let’s see how many of us want to go back to those days now. We need a new head of state with new blood in parliament to take our country forward and not backward. long live lanka

  • 2
    2

    IMF might be bankrupt so looking for excuses to avoid SL demands.

    Or

    Enhancing its bargaining power through strangling the client, probably to buy another piece

  • 2
    1

    If there is MaraSira government , there is a talk about international embargo , Srilanka will face economic collapse. Be prepared folks.

  • 1
    2

    IMF was the need of the USA who wanted to establish their dollar as an international Currency. Learn about how a developing country of BRAZIL – acountry fullof Shanty houses inthe capital city is now headed by a right wing politican. PEople say that bolsanaro’s win is completley carried out by the media. Most probably Cambridge analytica was behind with other social media, not just one.

    • 1
      0

      So what. Brazil had anarchy before. The former President is sitting in jail because of corruption. Its a verydevelopped beautiful country in the world. Its in a mess because former regimes destroy the country completely. People of Brazil elected President Bolsanaro because the country was in a mess. He is a democratically elected President of Brazil. He did not come from the back door like Mara.Instead of talking about a great leader like Bolsanaro why don’t you talk about whats happening in your backyard. So sad people like you don’t understand right from wrong.

    • 1
      0

      What the f you are talking about Cambridge Analytica. They got nothing to do with Brazil. You don’t know a shit about the world. I have been living here almost half a century and travel extensively in South America and the middle east. I see everything whats happening around the world with my own eyes. Thats why I’m commenting on what you mentioned.The comments you made shanties, they are all over the world. Thats why theres a social security system through out the civilized socities to help the poor.

  • 1
    3

    Can any one tell me what is the size of Somalian economy is it close to 20 billion USD . what is the per capital of somalia 1000 USD. The innocent comment writers you know what was the size of economic size of srilanka in 2005 it is only 20 billion USD you know per capital 1000 USD. The dear unp lovers you know when your innocent leaders had a government during 1977-,1994 the economy of srilanka is 15 billion USD and per capital was less than 800 USD.. In economic manage ment Somalian leaders are far more cleaver than unp idiots.when Mahinda took this economy in 2005 it was just 20 billion. USD his slfp government coverterd this economy in to 80 billion USD in just 10 years SLFP is the master brain in architecting this 80 billion usd business economy in srilanka and the made the per capital from 1000 usd to 3800 usd , brought investment from foreign was 1630 million usd. The country was given to mahindas slfp in 2005 is worse than somalia.the slfp government of Mahinda made this country a upper middle income country and world recognize srilanka as fastest growing economy in Asia during the rule of slfp of Mahinda. If any one argue with me that innocent unpers like Jr ,premadasa, gamini ,lalith or Ranil are cleaverr than Somalian leaders show me the economic performance record of unp. In this three weeks of time see the stock market, the business class are investing now ,this investment only will happened until the slfp is on power if unp comes same old seen starvation, no business, no food ,company bancrupt. I’m in financial sector after Mahinda came to power the business is coming up now as usual the same trend slfp government comes. If unp government comes again at least from another 3 months the people have collect the food from the dust pins.

    • 0
      0

      Dear Citizen

      Wow, the way you paint the picture under the leadership of MR, I can’t wait to take early retirement & return to SL. My work colleagues, after seeing the brief strip shown on TV news of the chaos in Parliament recently, were commenting how it compares with a brawl among thugs. I am sure, their view of Sri Lankans in general are based on the behaviour of the country’s leaders & I feel uncomfortable among my colleagues now, knowing that we are considered no better than terrorists & poor refugees who swarm the country. I wish I could share your positive outlook under MR’s leadership so that I could return to SL instead of being classed as third class in a developed country.

      • 1
        0

        I only talked about master brains and economic managers of slfp of Mahinda the architect s of huge 80 billion USD srilankan economy . if Mahinda did not elected as a president this srilanka is still a 20 billion USD economy like somalia. What my point was we can’t compare this unp people like Jr,premadasa, lalith,gamini or Ranil with slfp since they are economic master brains and they have proven track record.what I asked was is innocent unp leaders who are unable to uplift the country economy up to at least 15 billion USD can be even compare with Somalian leaders. If yes show unp economic management performance card. I praised the architecture of modern srilankan economy done by slfp that not means they are very democratic obviously slfp governments are Hitlers, that is why we are asking JVP as main opposition. Since unp is pathola party always talk and can’t do any thing. Please understand .you were in abroad may be you know what sort of starvation will come if unp governments come , people will beg on street and people has to search food from dust bins. Slfp is good for economy and business ,if there government is in all the business people will invest see the stick exchange of ours in last three weeks. This praise not means that slfp are very good for democracy

  • 0
    1

    IMF will dole out only to gentlemen beggars. So reinstate the old beggars and send them with the bowls to fill their pockets with National debts.

  • 0
    0

    Until the masses (70% of the
    Population living in villages) comprehend and have the ability to analyse correctly how politicians plunder the resources / public wealth, the dangerous and selfish politicians will continue to hoodwink the hapless masses.
    In order to stop this every effort should be made by the progressive, patriotic and honest intellectuals to educate the masses so that they will be able to punish errand politicians during an election democratically and identify and Elect only the honest, patriotic and capable candidates.
    In order to achieve this, it is mandatory that the election laws are introduced to compel all the election candidates advertise their past criminal records in public media before nominations are approved, like in recent India

  • 0
    0

    The Rajapakses got rid of the Tiger terrorists, now they will get rid of the ECONOMIC terrorists aka IMF. I urge readers to look up ICELAND which jailed fraudulent bankers and gave the boot to the IMF.

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