The Colombo Telegraph found the related leaked cable from the WikiLeak database. The cable classified as \u201cCONFIDENTIAL\u201d and recount details of a meeting Charge d\u2019Affaires James R Moore of the US Embassy has had with the Central Bank Governor Ajith N Cabraal and his staff on March 12, 2009.<\/p>\n
\u201cIn a collegial but stern conversation, Central Bank Governor told Charge that the GSL is disappointed by the lack of U.S. support for its IMF Stand\u2013by-Arrangement (SBA) and concerned that U.S. attempts to place political conditions on GSL\u2019s request are inappropriate\u201d Charge d\u2019Affaires James R Moore wrote. \u201cCabraal and Deputy Governor Jayamaha noted that the delay has put Sri Lanka and local markets under pressure that the GSL had not anticipated.\u201d he further wrote.<\/p>\n
![\"\"](\"http:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2011\/11\/ajith-nivard-cabraal_-colombo-telegraph.jpg\" "\\"To")
<\/a>Cabraal - We have done all that the IMF has asked<\/p><\/div>\n
According to the leaked US diplomatic cable Charge d\u2019Affaires detailed US concern about the GSL\u2019s ability and commitment to carry out an effective program in the current conflict circumstances. Charge said that GSL conduct in the final stages of the war, and the way humanitarian issues are handled, will greatly influence the government\u2019s ability to reconcile and reconstruct the country after the conflict, as well as the willingness of the international community to support reconstruction efforts. Charge stated that until the humanitarian situation in the North is clarified, it will be difficult to assess the actual cost of meeting the immediate and longer term needs of the people and reconstruction, as well as security expenditures. Charge encouraged the GSL to improve its humanitarian practices with an eye towards gaining wide donor support for near \u2013 term reconstruction needs.<\/p>\n
The Charge d\u2019Affairs wrote \u201cCabraal said that these issues have nothing to do with the economic basis on which IMF loan is determined, stating that holding economic measures to political conditions is not tenable nor fair. He noted that he is very upset that the \u2018whole composition of IMF will be disturbed by this new political dimension\u2019 that U.S. is placing on Sri Lanka\u2019s request. Jayamaha underscored that the domestic conflict is not be, and that the GSL has borrowed 22 times from IMF since 1976, most recently in 2001, 2003 and 2005. What the U.S. is doing, cabraal continued, \u2018is shocking to us\u2019\u201d<\/p>\n
Charge asked Cabraal about his recent trip to Libya, and reports of the government\u2019s efforts to secure a USD 500 million, 15 year loan. The Governor stated that, in the current absence of an IMF loan, the government is rightly pursuing \u2018plan B\u2019 options.<\/p>\n
Placing a comment Moor wrote \u201cIt appears unlikely the GSL will submit an LOI until there is some confirmation of U.S. support. However, we can expect that in the meanwhile they will do their best to approach others, including China, Iran and Saudi Arabia, for assistance\u201d<\/p>\n
Read the below cable for further details;<\/p>\n
Related news;<\/p>\n
WikiLeaks \u2013 We have done all that the IMF asked \u2013 Basil said to\u00a0US<\/a><\/strong><\/p>\n <\/strong>WikiLeaks: In reality economic decisions are made by Rajapaksa\u00a0brothers<\/strong><\/a><\/p>\n […]<\/p>\n","protected":false},"author":21,"featured_media":1732,"comment_status":"open","ping_status":"open","sticky":true,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[53,1,27],"tags":[1161,1427,1298,1263],"class_list":["post-1727","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-global-politics","category-news","category-wikileaks","tag-foreign-affairs","tag-sri-lanka-on-imf","tag-sri-lankans-in-wikileaks","tag-us-embassy-cables-on-sri-lanka"],"yoast_head":"\nVZCZCXRO3169\nOO RUEHBI\nDE RUEHLM #0523\/01 1331151\nZNY CCCCC ZZH\nO 131151Z MAY 09\nFM AMEMBASSY COLOMBO\nTO RUEHC\/SECSTATE WASHDC IMMEDIATE 9968\nINFO RUEHKA\/AMEMBASSY DHAKA PRIORITY 1661\nRUEHIL\/AMEMBASSY ISLAMABAD PRIORITY 8663\nRUEHKT\/AMEMBASSY KATHMANDU PRIORITY 6898\nRUEHNE\/AMEMBASSY NEW DELHI PRIORITY 3027\nRUEHCG\/AMCONSUL CHENNAI PRIORITY 9289\nRUEHBI\/AMCONSUL MUMBAI PRIORITY 6596\nRUEATRS\/DEPT OF TREASURY WASHDC PRIORITY\nC O N F I D E N T I A L SECTION 01 OF 02 COLOMBO 000523\n\nSIPDIS\n\nDEPT FOR EEB\/IFD\/OMA BRIANA SAUNDERS AND SCA\/INSB\nTREASURY FOR SUSAN CHUN\n\nE.O. 12958: DECL: 05\/12\/2019\nTAGS: EFIN<\/a> ECON<\/a> PREL<\/a> PHUM<\/a> KDEM<\/a> CE<\/a>\nSUBJECT: SRI LANKA: CB GOVERNOR DISAPPOINTED ABOUT IMF\nREQUEST\n\nREF: A. COLOMBO 508\n \u00b6<\/a>B. OWEN-MOORE EMAIL 05\/06\/09\n \u00b6<\/a>C. COLOMBO 488\n \u00b6<\/a>D. SECSTATE 41959\n \u00b6<\/a>E. COLOMBO 449\n \u00b6<\/a>F. COLOMBO 431\n \u00b6<\/a>G. COLOMBO 385\n \u00b6<\/a>H. COLMOBO 285\n \u00b6<\/a>I. COLOMBO 244\n\nClassified By: Charge d'Affaires James R Moore Reasons 1.4(b)(d)\n\n\u00b6<\/a>1. (C) Summary: In a collegial but stern conversation,\nCentral Bank Governor Cabraal told the Charge that the GSL is\ndisappointed by the lack of U.S. support for its IMF Stand-by\nArrangement (SBA) and concerned that U.S. attempts to place\npolitical conditions on the GSL's request are inappropriate.\nCabraal also underscored that the GSL has met all IMF\nrequirements. In discussing reconciliation and\nreconstruction of the North, Cabraal emphasized that it is\nboth the government's responsibility and desire to quickly\nrebuild the North, and to ensure that its people are able to\nquickly return to their home and livelihoods. In the absence\nof an IMF SBA, the GSL is looking to other countries for\nfinancial support. End summary.\n\n\u00b6<\/a>2. (C) Charge and Econ Chief met with Central Bank Governor\nNivard Cabraal on May 12. Cabraal started the meeting by\nnoting his disappointment that Sri Lanka's request for an IMF\n(SBA) has not come through, and noted in particular his\ndisappointment that the U.S. has not yet backed the request.\nHe underscored that the GSL has done all that the IMF has\nasked including, for example, introducing new tax measures\nand altering its monetary policy. Cabraal and Deputy\nGovernor Jayamaha noted that the delay has put Sri Lanka and\nlocal markets under pressure that the GSL had not anticipated.\n\n\u00b6<\/a>3. (C) Charge detailed ref b points, noting U.S. concern\nabout the GSL's ability and commitment to carry out an\neffective program in the current conflict circumstances.\nCharge said that GSL conduct in the final stages of the war,\nand the way humanitarian issues are handled, will greatly\ninfluence the government's ability to reconcile and\nreconstruct the country after the conflict, as well as the\nwillingness of the international community to support\nreconstruction efforts. Charge stated that until the\nhumanitarian situation in the North is clarified, it will be\ndifficult to assess the actual costs of meeting the immediate\nand longer term needs of the people and reconstruction, as\nwell as security expenditures. Charge encouraged the GSL to\nimprove its humanitarian practices with an eye towards\ngaining wide donor support for near-term reconstruction needs.\n\n4.(C) Cabraal said that these issues have nothing to do with\nthe economic basis on which an IMF loan is determined,\nstating that holding economic measures to political\nconditions is not tenable nor fair. He noted that he is very\nupset that the \"whole composition of the IMF will be\ndisturbed by this new political dimension\" that the U.S. is\nplacing on Sri Lanka's request. Jayamaha underscored that\nthe domestic conflict is not new, and that the GSL has\nborrowed 22 times from the IMF since 1976, most recently in\n2001, 2003, and 2005. What the U.S. is doing, Cabraal\ncontinued, \"is shocking to us.\"\n\n\u00b6<\/a>5. (C) Cabraal went on to note that it is the GSL's job to\ncare for its people and to reconstruct the North, whether or\nnot the donor community plans to assist. He underscored the\nentire government's deep commitment to do so, outlining, as\nan example, a specific Central Bank plan to provide Rs 3\nbillion (USD 26 million) worth of credit facilities for\ncapital investment in the Northern Province. He said having\npeople return to their homes and their livelihoods quickly,\nas has happened in the East due to significant government\nefforts, is key. Addressing some public stories that the\ngovernment is not treating Northern Tamils appropriately,\nCabraal noted that it would not be in the government's\ninterest to hurt them. The current government will soon be\nseeking their votes. Cabraal went on to highlight that he\nrecently met with members of the Sri Lankan Diaspora -- both\nSinhalese and Tamils -- in Rome and London to encourage them\nto contribute to rebuilding the North and to outline the\n\nCOLOMBO 00000523 002 OF 002\n\nspecial concessions that will be available for them to ease\nthe entry of capital back into the market. \"We want their\nassistance,\" he said, implying that if the government did not\nfairly treat those within its care, they would not get it.\n\n\u00b6<\/a>6. (C) Charge noted that the U.S. continues to weigh whether\nthe proposed SBA can be effective based on the GSL's\ncommitment to reform and garnering public support to ensure\nsuccess in an IMF-supported macroeconomic stabilization\nprogram under the current circumstances. Cabraal stated that\nif the U.S. is keen to see reconstruction happen quickly,\nthen the U.S. should support this loan. Approval of the SBA\nwill stabilize the economy and encourage the Diaspora and\ninvestors to reinvest in the North and East.\n\n\u00b6<\/a>7. (C) When asked why the government has not yet submitted a\nsigned LOI, Cabraal stated that the IMF had asked the\ngovernment to hold the LOI out of concern that the U.S. will\nnot support it, thereby -- in Cabraal's words -- \"causing a\ncrisis for them as well.\" Cabraal stated that if given the\ngo ahead by the IMF, he could have the LOI immediately signed\nand submitted by President (and Finance Minister) Rajapaksa.\nHe said holding the request was not his preference; he favors\nthe request going forward. If it fails, so be it; the IMF\nmembers have the right not to approve it. Jayamaha and\nCentral Bank Chief Economist Nandalal Weerasinghe interrupted\nto again stress that the GSL has met all IMF requirements.\nCabraal also noted that other countries, including the\nChinese, Japanese, and Russian IMF Executive Directors he met\nwith in Washington, are all very supportive of Sri Lanka's\nrequest and its actions to date to fulfill IMF requirements.\n\n\u00b6<\/a>8. (C) Charge asked Cabraal about his recent trip to Libya,\nand the reports of the government's efforts to secure a USD\n500 million, 15-year loan. The Governor stated that, in the\ncurrent absence of an IMF loan, the government is rightly\npursuing \"plan B\" options. He stated that a team is in Libya\nnow working on the deal. Econ Chief asked if the GSL is also\npursuing loans or currency swaps from other countries, such\nas China. Cabraal did not go into specifics, but stated that\nthe government is looking at other possibilities.\n\nCOMMENT\n--------\n\n\u00b6<\/a>9. (C) Cabraal noted that some members of his team had\nadvised him against pursuing an IMF SBA. When the Charge\nasked why they would do so, Cabraal said because they were\nconcerned \"something like this\" would happen. When Charge\nagain asked why they would think so, Cabraal appeared stumped\nand was unable to connect the dots. It appears unlikely the\nGSL will submit an LOI until there is some confirmation of\nU.S. support. However, we can expect that in the meanwhile\nthey will do their best to approach others, including China,\nIran, and Saudi Arabia (from which Foreign Minister\nBogollagam just returned), for assistance.\nMOORE<\/pre>\n","protected":false},"excerpt":{"rendered":"