IMF warns Sri Lanka against borrowing
The IMF on Monday warned Sri Lanka against issuing government bonds to build up foreign currency reserves after it released the second instalment of a 2.6-billion-dollar bailout.
The International Monetary Fund said Colombo's reserves were at a "comfortable position" having slumped to a historic low of one billion dollars earlier this year, but cautioned against more borrowing.
"There is a difference between borrowed reserves and reserves collected from the current account (of the balance of payments), like booming exports," IMF resident representative in Sri Lanka, Koshi Mathai, told reporters.
Sri Lanka's reserves topped a record five billion dollars after the IMF on Friday released 329.4 million dollars, the Central Bank of Sri Lanka said.
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