21 October 2009

India Offered Sri Lanka US$2.6bn If IMF Refused

21st October 2009, www.dailymirror.lk, By Kelum Bandara and Yohan Perera

Indian Prime Minister Manmohan Singh had directly told the International Monetary Fund that his government would give Sri Lanka US$2.6 billion if the IMF did not approve the standby facility requested by the country, parliament was told yesterday.

Deputy Finance Minister Sarath Amunugama said this was the type of friendship Sri Lanka had nurtured especially with its regional neighbours and that the country would never forget the assistance received from countries like India and Pakistan.

“I want to place this on record. Indian Finance Minister Pranab Mukherjee telephoned the Indian representatives of the IMF and asked them to canvass for the approval of this loan to Sri Lanka.

Dr. Singh had himself said that in case the IMF does not approve the loan, India will not hesitate to provide the required funds,” Dr. Amunugama said.

He said a mega development boost was to be seen in post conflict Sri Lanka.

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