Multilateral lenders will resume lending once IMF program in place - Coomaraswamy

 

The former Central Bank Governor, Dr.Indrajit Coomaraswamy says that the International Monetary Fund (IMF) does meet out remedies which are not pleasant and that the people need to essentially compress their investment and consumption.

“Going to IMF is like going to a doctor.You go there when you become sick.So you can’t then blame the doctor for giving medicines that’s bitter.That is what a doctor is intended to do.”
 

“So when you go to IMF, the IMF does meet out remedies which are not pleasant, because it is usually when you are living beyond your needs, that you need to essentially compress investment and consumption to bring your economy into better balance”, the former Central Bank Chief mentioned.

Joining an event held in Colombo Tuesday (Nov.29), Dr.Coomaraswamy emphasized that in the successful countries in East and South-East Asia, growth is highly correlated to the surpluses in their current accounts of their balance of payments.“It is due to their export performances, but in Sri Lanka growth is correlated to the size of the budget deficit,” he said.