Reserves satisfactory despite talks for IMF support: Ravi K

Friday, 18 December 2015 00:22 - - {{hitsCtrl.values.hits}}

By Ashwin Hemmathagama – Our Lobby Correspondent

Finance Minister Ravi Karunanayake yesterday told Parliament that the country’s reserves were satisfactory though discussions are on with the IMF for a stand-by facility.

“Even though a standby facility is now being discussed with the International Monitory Fund (IMF) the net international reserves of Sri Lanka remains healthy and as expected,” Karunanayke told Parliament yesterday.

Giving reason for the drop in net international reserves from $6.5 billion in 2014 to $6.1 billion this year, Minster Karunanayake said: “We had to use $400 million to settle a bullet payment the previous Government took. However, we noticed Rs.750 million worth of inward remittances after the 2016 Budget was presented in Parliament. This will have a positive impact on net international reserves,” the Minister added.

According to the minister the use of a standby facility may not arise with India starting to devalue the Indian currency, Chinese Government already devalued renminbi, and the US federal reserve increasing the rate by 0.25. “These changes will bring some stability to economies,” predicted Minister Karunanayake.

“To avoid possible impact on Sri Lanka from the current global financial crisis and a possible ISIS attack in Sri Lanka the stand-by facility is discussed with the IMF. But we will not adhere to their list of requirements without informing the Parliament,” Minister Karunanayake assured Parliament.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.