Financial expert warns the Friday attack on the Galle Face Green strugglers may scuttle Sri Lanka’s effort to obtain IMF assistance to overcome the economic impasse.
Reports indicate that the attack by the security forces on the Galle Face Green protesters last Friday has directly impacted the bail-out package envisaged by the IMF for Sri Lanka.
The reason adduced is the violation of three conditions stipulated by the foreign relations committee of the US senate. The foreign relations committee is keeping tabs on Sri Lanka, where Sri Lanka comes under an obligation to fulfil several conditions to obtain the relief package provided by the IMF. An American financial expert told the Lankasara on the condition of anonymity.
According to her, the Senate Committee on Foreign Relations of the US congress, has submitted a proposal to the International Monetary Fund that three fundamental conditions must be adhered to grant Sri Lanka an IMF loan relief to overcome the economic crisis.
One of the conditions is that the Central Bank of Sri Lanka must implement a strong anti-corruption program and promote the rule of law.
Senator Bob Mendozas, Chairman of the Senate Committee, has said that if it is not the case, the financial assistance given to Sri Lanka cannot be put into effective use and the country will be pushed further deep into crisis.
It is learnt they have submitted proposals on these conditions in the first week of this month.
The US Senate yesterday issued a message through its official Twitter account about the US foreign relations committee, that stipulated those conditions, saying that the violence perpetrated on the peaceful protesters in Sri Lanka early Friday morning by the Sri Lankan security forces was appalling.
The Senate Committee has emphasized to President Ranil Wickramasinghe to devote himself to fulfilling the aspirations of the people of the country on a strong foundation of democracy and work towards creating economic stability. Above all the Senate Committee has emphasized that the human rights of the people and their dignity should be protected.
This financial expert says that the International Monetary Fund will pay close attention to the issue raised by the foreign relations committee of the US Senate. This is against the backdrop where the International Monetary Fund is already focusing on the country’s political stability and good governance policies including human rights.
In addition, reaching an agreement on the debt restructuring of Sri Lanka is a precondition for obtaining financial relief from the International Monetary Fund. Although the relevant creditors are ready to provide some relief, there are strong sentiments expressed on the country’s good governance, human rights, and anti-corruption policies.
She warned that the comments they have received so far and yesterday’s attack may put Sri Lanka and the government in an awkward position.
