[stop-imf] Sri Lanka: Government Rejects IMF Dictat

[Robert Weissman]

*http://www.sundayobserver.lk/2005/11/06/new20.html

Sunday Observer (Sri Lanka)
Nov 6, 2005

Government rejects IMF dictat*

/by Anura Maitipe /

The government has refused to accept USD 389 million offered by the
International Monetary Fund (IMF) for policy reforms, Ports and Aviation
Minister Mangala Samaraweera told at a news conference held at Sri Lanka
Foundation Institute (SLFI) last week.

He added that the Government has refused funds offered by the IMF for
policy reforms the pre-condition of which fund was that government
should agree to abolish the pensions scheme, privatise water resources,
Inland Revenue Department, Customs Department, People's Bank and Excise
Department. In addition send over 300,000 State employees on compulsory
retirement, the Minister added.

The UNP government led by Ranil Wickremesinghe had agreed to these
conditions. These are the funds that Ranil Wickremesinghe refers to at
election rallies. In the event of his victory, he will place these State
institutions and water resources on the IMF platter and make 300,000
employees jobless, he warned.

Minister Samaraweera also refuted charges levelled against the
Government by the UNP Presidential candidate Ranil Wickremesinghe that
the government had not used funds allocated by the Tokyo Donor Conference.

He added that government has entered into US$ 4.5 billion worth of
agreements with foreign funding agencies. In addition to this the
government has already prepared a long-term plan to utilise promised US
aid.

Minister Samaraweera also rejected charges levelled against the
Government by the UNP leader Ranil Wickremesinghe of the non-growth of
the economy under the UPFA government.

He said that under the UNP regimes economic disparity had widened. Now
we have filled this gap upto a certain extent. In 1994 per capita stood
at Rs. 600 now it has grown upto Rs. 1,200. In 1994 the GDP stood at 12
percent now it has increased up to 18 per cent. In 1994 export earnings
stood at Rs. 1.2 billion now it has grown upto Rs. 5.8 billion and
foreign remittances in 1994 were Rs. 600 million and now it has grown
upto Rs. 1.5 billion. In 1994 unemployment stood at 12 percent now it
has been reduced to 8 per cent.

Once he was a Prime Minister and the Opposition Leader of this country
but still the UNP leader Ranil Wickremesinghe seems not conversant with
State affairs.

Therefore his suitability to be the President of this country is in
question, the voters will give him a negative answer in the forthcoming
Presidential Election, he warned.