Sept 30, Colombo: The Governor of Sri Lanka's Central Bank Ajith Nivard Cabraal says the country is not engaged in any discussion with the International Monetary Fund (IMF) for an additional loan facility.
He has said that officials from the IMF are currently in Sri Lanka for a routine visit.
Cabraal has made this comment in relation to previous reports that the Bank was trying to negotiate an additional US$ 500 million facility.
According to the Governor, the team is studying the impact of monetary policy changes the government made in February and March to cap the ballooning trade deficit.
Awarding the final tranche of the Stand-By Arrangement approved on July 24, 2009, the global lender suggested that a "successor arrangement with the Fund (IMF)" would provide valuable support to the Sri Lankan authorities to continue macroeconomic stabilization and structural reforms efforts, in particular maintaining exchange rate flexibility while building international reserves.
Cabral has said that any future negotiations on facilities would be based on local needs and other global developments and therefore, there would not be any discussion on a fund facility with the current IMF mission.