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Yahoo! My Yahoo! Mail Yahoo! Search Search: Sign InNew User? Sign Up News Home - Help Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Singapore Asia Pacific World Search Search: Sri Lanka accuses IMF of playing politics AFP - Saturday, June 27 WASHINGTON (AFP) - - Sri Lanka on Friday accused the International Monetary Fund of politicizing financial aid following the fund's delay in considering a 1.9 billion dollar bailout for the war-ravaged economy. ADVERTISEMENT "Never ever has the IMF taken political factors into account. Now, it seems for the first time they are doing that -- indirectly," Sri Lankas trade minister G.L. Peiris told AFP in Washington ahead of talks with fund officials. Sri Lanka tapped the IMF for aid in March in a bid to stave off its first balance of payment deficit in four years after the island's foreign currency reserves fell to around six weeks' worth of imports. The loan has been put off due to political pressure from the United States, Britain and other Western nations over Colombo's handling of the final stages of the battle against Tamil separatists and charges that thousands of civilians were killed. The Tamil Tigers were defeated last month. Peiris said the IMF and Sri Lankan authorities had completed what he called "tactical discussions" over the 1.9 billion dollar standby facility as early as April but that the fund's board had still not met to consider the issue. "So we think that it is wrong and apart from the fact that it is unfair because Sri Lanka has to be helped in this situation, not obstructed, it is a very unsound and dangerous precedent for the future," he warned. "The IMF is now going to be embroiled in controversial political issues as part of the criteria governing their judgment in respect of particular transactions. That is very much our view," Peiris said. The United States, the main shareholder in the IMF and whose approval is key to the release of the money, has welcomed the end to the fighting in Sri Lanka but urged Colombo to meet the needs of the displaced masses and engage with all communities to protect their rights. Washington has also supported calls for a probe into alleged war crimes committed by Sri Lankan government troops. The IMF said on May 15 that it was in "advanced stage" of discussions with the Sri Lankan authorities on the bailout prospects and that it looked forward to having a program brought to the board for approval "in the coming weeks." Peiris remained confident however that the bailout funds "will come through" to Sri Lanka eventually. Human rights organizations have reported that thousands of Tamils had been taken from the state-run camps for those displaced by fighting. The United Nations also has often been at odds with the Sri Lankan government over Colombo's handling of the treatment of 300,000 people displaced by the fighting and detained in temporary shelters. Peiris responded to allegations by some human rights campaigners who compared the plight of the displaced Tamil civilians in government camps to that under Nazi Germany. "This connotation of a Nazi concentration camp is a figment of their imagination. It is not true," he said. Email Story IM Story Printable View Blog This Sign in to recommend this article » 0 users recommend Related Articles: China's Economy FOREX-US dollar slides on China comments; risk appetite upReuters - Saturday, June 27 CORRECTED - GLOBAL MARKETS-Stocks slip on high savings rate, dollar slidesReuters - Saturday, June 27 Sri Lanka accuses IMF of playing politicsAFP - Saturday, June 27 GE's Immelt says U.S. economy needs industrial renewalReuters - Saturday, June 27 Related Articles: Business Takeda fails to get U.S. approval for diabetes drugReuters - 1 hour 45 minutes ago Japan's Elpida to receive $2.1 bln in aid: reportAFP - 2 hours 22 minutes ago CORRECTED - CORRECTED-UPDATE1-Kumar Mangalam Birla to inherit Kesoram, CentuReuters - 2 hours 26 minutes ago CORRECTED - CORRECTED-Malaysia Gamuda says Splash gets $844 mln buyout offerReuters - 2 hours 49 minutes ago Japan to appoint Tamaki as new currency tsar-NikkeiReuters - Saturday, June 27 Enlarge Photo Sri Lanka accuses IMF of playing politics Related Photos Slideshow Full Photo Coverage: Business & Economy Related Full Coverage China Economy china economy All Full Coverage Most Popular – Business Viewed Pop icon Michael Jackson dead: TMZ.com website Botox helps Australian stroke victim to walk again Farrah Fawcett dead at 62: Ryan O'Neal Sarah Jessica Parker welcomes surrogate twins Egyptian tycoon to hang for Lebanese diva murder View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Copyright © 2009 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Privacy Policy - Terms of Service - Community - Intellectual Property Rights Policy - Help

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