Sri Lanka signs Letter of Intent for IMF Loan as the foreign reserves are improving

(July 21, 2009 -Lanka Polity) Sri Lanka's foreign currency reserves have risen to more than $1.7 billion from $1.44 billion at the end of May and $1.27 billion by the end of March, the Central Bank governor Ajith Nivard Cabraal said on Monday.

However, although the urgency for the $ 1.9 billion loan is ebbing as the Central Bank governor says, the bank signed a list of promises to the International Monetary Fund (IMF) for a proposed lending agreement to repay debt and rebuild the island economy.

“We have set out our intentions, which do not differ from the macroeconomic policy thrust that we have been following,” central bank governor said in a telephone interview today to Bloomberg. But he seemed evading divulging the promises.