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Sri Lanka to discuss new program later: IMF Rep

Oct 12, 2012 (LBO) - A separate mission would arrive in Sri Lanka to have discussion on an ongoing program with Sri Lanka with the end of a successful 2.
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5 billion US dollar standby arrangement, an International Monetary Fund official said. IMF's resident representative in Colombo Koshy Mathai said a mission that had just left the island was engaged in routine discussions.
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Sri Lanka is due to present a budget for 2013 in November.

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Mathai told a business forum at Sri Lanka's Ceylon Chamber of Commerce that he expected the administration to continue on a path of gradual deficit reduction with policies that prevented shocks to the economy.

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Though growth was lower, interest rates and inflation was higher than in 2011, the economy was now stable and on a recovery track, he said.

Sri Lanka has expressed interest in having an ongoing 'surveillance' program with the IMF which may involve further contingency funds of around 500 million US dollars.

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The 2.5 billion US dollar program that ended helped rescue the country from two balance of payments crises.

The IMF, as the global monetary watchdog keeps a tab on all member countries and gives policy advice and technical support when needed, even without a specific program

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