Jan 04, Colombo: Sri Lanka is seeking another loan of US$ 1 billion from the International Monetary Fund (IMF) to support the government's budget this year, according to a top government official.
Country's Treasury Secretary Dr. P.B. Jayasundera has told reporters in Colombo Friday that the government will hold discussions with the IMF to borrow another US$ 1 billion after the foreign investments in infrastructure failed to materialize in time.
The Treasury Secretary has said that delays in construction work had slowed the foreign direct investment (FDI) in-flows which are about 50 percent down from the government's original target for 2012.
The Central Bank reported FDI inflows, including foreign loans to BOI companies, for the first nine months of the year amounted to US$ 614.7 down by 9.4 percent from the previous year.
The government however, said today that the FDI doubled in 2012 to US$ 2 billion from the previous year.
Dr. Jayasundera has said that the government is asking the IMF to extend budget support and the money would be used for government spending.
Sri Lanka obtained a US$ 2.6 billion loan from the IMF under a Stand-By Arrangement on July 24, 2009. At the time of the SBA's final installment in July 2012, the IMF 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.