Oct 17, Colombo: Sri Lanka's Marxist party Janatha Vimukthi Peramuna (JVP) says the government is currently working according to a set of new economic policies in line with conditions laid down by the International Monetary Fund (IMF).

JVP Propaganda Secretary Vijitha Herath told a news conference today that the government has shown an inclination towards carrying out an economy based on collecting loans instead of resorting to a production based economy.

Observing that over three years after the end of the war, the government is yet to get the economy on the right path, Herath explained that the loans taken by the government in the first seven months of the year have increased by a trillion rupees.

According to Herath, the government in the Appropriation Bill for 2013 has stated that Rs. 1.3 trillion would be taken as loans.

"The country would be entangled in a massive debt trap by this move," he noted.

The IMF however is of the view that Sri Lanka's new policy framework will strengthen the fundamentals of the economy and lay the basis for sustained economic growth.