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Leading News from Sri Lanka ::
Nov 10, Colombo: The International Monetary Fund (IMF) has told the New York base Human Rights Watch (HRW) that the "people of Sri Lanka—and especially those who are most vulnerable—cannot be held responsible for the current situation" and its aim is to prevent an economic crisis in the country regardless of one's opinion of the human rights situation.
In a letter IMF Managing Director Dominique Strauss-Kahn responding to Executive Director of HRW's Asia Division, Brad Adams said the collapse of Sri Lanka's economy cannot be considered a reasonable outcome and the effects would be catastrophic for the people, and especially for the poor in the country.
Strauss-Kahn said that although he shares the HRW's concerns, the fact is, however, that the economic crisis would only worsen their situation.
"Our role now—as set out in the Articles of Agreement which govern the IMF—is to do everything possible to prevent a collapse," he said adding that the IMF aims to provide the resources necessary to prevent a full-blown economic crisis, contribute to reconstruction efforts, and sustain social spending aimed at protecting the poor.
In July, the IMF approved a 20-month Stand-By Arrangement for Sri Lanka providing with a $2.6 billion loan to help overcome the effects of the global financial crisis and support the economy following the three-decade long war that drained the resources of the country.
Last week the IMF approved the immediate release $322 million as the second installment following a review on the government's progress on the implementation of reforms agreed to obtain the loan.
The US, UK, HRW and few other organizations opposed the IMF's stand to provide the loan to Sri Lanka citing alleged human right violations by the government.
The Managing Director said the Sri Lankan government has committed to creating a social safety net for the displaced as quickly as possible.
IMF said in their most recent communications with the IMF on the program, the Sri Lankan authorities have reiterated their commitment to rapidly address humanitarian issues.
The government has committed to creating a social safety net for the displaced as quickly as possible as well as to considerably reduce the military spending in the 2010-2011 period, the letter to HRW pointed out.
"The government has begun redeploying resources previously allocated to military spending toward reconstruction efforts in the north, such as de-mining, basic infrastructure, and other activities essential for the reintegration of the Tamil people," Staruss-Kahn said in his response.
Staruss-Kahn assured that the IMF will continue to monitor progress in addressing the grave humanitarian problems, the returning of displaced persons to their homes, and the reconstruction of basic infrastructure.
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