The International Monetary Fund (IMF) has warn that more attention should be focused over Sri Lanka’s state and private banks becoming indebted to foreign countries day by day.
Similarly, the IMF has also said that Sri Lanka should be cautious over its inflation as well. While this is not the first time that the IMF has warned Sri Lanka over its foreign debts, it has drawn attention to several earlier warnings as well.
By now the government continues to borrow from foreign markets through the local banks, several banks have taken steps to issue international bonds during recent times.
When Sri Lanka had faced a balance of payment crisis in 2009 the IMF had provided a loan of USD 2.5 billion and also had continued to provide economic advice.
The IMF has said that the current monetary policies are suitable and that this has resulted in the low inflation rate.
