Sri Lanka will ask for another loan from the International Monetary Fund (IMF) says the Governor of the Sri Lankan Central Bank Ajith Nivard Cabraal. The discussions to get the loan will commence in January he added.
Central Bank received a loan of US$248 billion by the middle of this year. Economists point out taking loans would create more crises in the country. The government withdrawing form welfare and services to fulfill conditions of the IMF to get loans has jeopardized those sectors they point out. Getting more loans under more conditions would create havoc in the economy and lives of the people they warn.
Also, speaking regarding the manner the loans have been obtained they point out the country has been already trapped in a foreign debt snare. They say by year 2000 the foreign debt of the country was only US$9 billion. However, this went up two fold by 2009 and during the last three years it has gone up to US$27 billion they point out.
In such a situation getting more loans from IMF would be detrimental say economists.