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The IMF plans to work on a macroeconomic impact, budgetary and balance of payments needs assessment to the tsunami-hit Sri Lanka, besides stepping in with up to US$ 160 mn in emergency financial assistance, a senior International Monetary Fund official said on Wednesday.
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The IMF plans to work on a macroeconomic impact, budgetary and balance of payments needs assessment to the tsunami-hit Sri Lanka, besides stepping in with up to US$ 160 mn in emergency financial assistance, a senior International Monetary Fund official said on Wednesday. Anne O Kruegar, first deputy managing director noted that the Sri Lankan economy has taken the biggest beating alongside Maldives following the Dec.
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26 tsunami.

The Fund on Tue., shaved off a percentage of Sri Lanka's 2005 economic growth to four percent, while inflation was forecasted to go shoot up to 14 percent, from an earlier 12 percent.

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The country report warned that the "broader macro-economic impact will clearly be substantial."

The tsunami also left Sri Lanka with a US$ 1.8 bn reconstruction bill, which works out to about 6.

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5 percent of GDP.

Much of the reconstruction costs will come in from foreign donors, either through new loans/grants or by rescheduling debt repayments – like the Paris Club's one year de

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