One third of first tranche of IMF bailout vaporised

Twenty four hours after Sri Lanka received USD 333 mn in terms of the agreement with the IMF, USD 121 was paid to India.State Finance Minister Ranjith Siyambalapitiya told a gathering at Ruwanwella that from the first tranche of the IMF bailout package, USD 121 million had been used to repay the first installment of the Indian credit line.

Sri Lanka received USD 1 bn Indian credit line early last year.

Responding to The Island’s query why IMF funds had been used to settle an Indian loan as the government repeatedly declared that repayment of loans were suspended pending debt restructuring, a ministry spokesperson said that the Indian credit facility was outside that scheme. It was a short-term facility and payments had to be made, the official said. (SF)