By Doug Palmer
WASHINGTON, July 24 (Reuters) - A top Sri Lankan official said he expected the International Monetary Fund's board to give final approval later on Friday to a $2.5 billion loan deal to help the country cope with the global financial crisis and pay for reconstruction after a 25-year war.
'We have no problem obtaining the loan, I believe,' Sri Lanka's minister of enterprise development and investment promotion Anura Priyadarshana Yapa told Reuters. 'There will be a successful conclusion at the meeting.'
However, a U.S. Treasury official said the United States had abstained in the vote, and another source indicated that Britain was expected to oppose the loan.
Approval of the loan would let Sri Lanka tap the first disbursement of $313 million under the 20-month program.
Sri Lanka 'is embarking upon a very rapid development program for the north and east,' previously controlled by separatist rebels the government defeated in May, Yapa said.
'Now is the time for (the IMF) to support us because now we have completely destroyed one of the worst terrorist outfits in the world and it is time to start the reconciling and healing process in our country,' Yapa said.
Sri Lanka requested an IMF loan in March after reserves fell 50 percent in the last four months of 2008.
An agreement was delayed by opposition from the United States after the government refused to back off its final offensive against the rebel forces.
MOST STABLE IN 30 YEARS
Yapa said Sri Lanka was eager for U.S. investment to help rebuild war-torn regions. The country is also ready to offer tax holidays of three to 15 years in a broad range of sectors such as information technology, health care, tourism, manufacturing, and business process outsourcing, he added.
Jaliya C Wickramasuriya, Sri Lanka's ambassador to the United States, said, 'Compared with the last 30 years, we have the most stability right now. The president is the most popular leader of the last 30 years, so this the time for anyone to come in.'
There are 76 U.S. companies already operating in Sri Lanka, with a combined investment of some $200 million.
About 25 percent of Sri Lanka's exports go to the United States. A big share of that is apparel, including high-value garments made for retailers such as Victoria's Secret, which is owned by Limited Brands.
Sri Lanka hopes to attract $1 billion in new foreign investment this year, after reaching about $888 million in 2008, Yapa said.
He was in Washington for meetings with U.S. trade officials and a leading U.S. business group after a stop in Los Angeles.
Economic growth in Sri Lanka's western province already is higher than that in India and China, and the government is eager to bring growth in northern and eastern areas up to the same level, Sri Lankan officials said.
The government is looking for a foreign investor to help restore a cement factory closed by the war and to take advantage of the country's substantial limestone deposits.
'Also, the entire coastal line is full of fish for offshore fishing and tourism-related industries also can be discussed,' Yapa said. 'One particular beach, Arugum Bay, is one of the best eight for surfing in the world.'
About two-thirds of the coastal area was controlled by the rebels, so development there has lagged behind, he said.
Sri Lanka also has begun steps to develop oil and natural gas fields in its northwestern coast.
The government has already auctioned one of three blocks for exploration, and is considering auctioning the other two. It will have a better sense of how much oil and natural gas is there once further surveys are done, Yapa said.
(Reporting by Doug Palmer; Editing by Jan Paschal ) Keywords: IMF/SRILANKA (doug.palmer@thomsonreuters.com; Tel: +1 202 898 8341; Reuters Messaging: doug.palmer.thomsonreuters.com@reuters.net ) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
WASHINGTON, July 24 (Reuters) - A top Sri Lankan official said he expected the International Monetary Fund's board to give final approval later on Friday to a $2.5 billion loan deal to help the country cope with the global financial crisis and pay for reconstruction after a 25-year war.
'We have no problem obtaining the loan, I believe,' Sri Lanka's minister of enterprise development and investment promotion Anura Priyadarshana Yapa told Reuters. 'There will be a successful conclusion at the meeting.'
However, a U.S. Treasury official said the United States had abstained in the vote, and another source indicated that Britain was expected to oppose the loan.
Approval of the loan would let Sri Lanka tap the first disbursement of $313 million under the 20-month program.
Sri Lanka 'is embarking upon a very rapid development program for the north and east,' previously controlled by separatist rebels the government defeated in May, Yapa said.
'Now is the time for (the IMF) to support us because now we have completely destroyed one of the worst terrorist outfits in the world and it is time to start the reconciling and healing process in our country,' Yapa said.
Sri Lanka requested an IMF loan in March after reserves fell 50 percent in the last four months of 2008.
An agreement was delayed by opposition from the United States after the government refused to back off its final offensive against the rebel forces.
MOST STABLE IN 30 YEARS
Yapa said Sri Lanka was eager for U.S. investment to help rebuild war-torn regions. The country is also ready to offer tax holidays of three to 15 years in a broad range of sectors such as information technology, health care, tourism, manufacturing, and business process outsourcing, he added.
Jaliya C Wickramasuriya, Sri Lanka's ambassador to the United States, said, 'Compared with the last 30 years, we have the most stability right now. The president is the most popular leader of the last 30 years, so this the time for anyone to come in.'
There are 76 U.S. companies already operating in Sri Lanka, with a combined investment of some $200 million.
About 25 percent of Sri Lanka's exports go to the United States. A big share of that is apparel, including high-value garments made for retailers such as Victoria's Secret, which is owned by Limited Brands.
Sri Lanka hopes to attract $1 billion in new foreign investment this year, after reaching about $888 million in 2008, Yapa said.
He was in Washington for meetings with U.S. trade officials and a leading U.S. business group after a stop in Los Angeles.
Economic growth in Sri Lanka's western province already is higher than that in India and China, and the government is eager to bring growth in northern and eastern areas up to the same level, Sri Lankan officials said.
The government is looking for a foreign investor to help restore a cement factory closed by the war and to take advantage of the country's substantial limestone deposits.
'Also, the entire coastal line is full of fish for offshore fishing and tourism-related industries also can be discussed,' Yapa said. 'One particular beach, Arugum Bay, is one of the best eight for surfing in the world.'
About two-thirds of the coastal area was controlled by the rebels, so development there has lagged behind, he said.
Sri Lanka also has begun steps to develop oil and natural gas fields in its northwestern coast.
The government has already auctioned one of three blocks for exploration, and is considering auctioning the other two. It will have a better sense of how much oil and natural gas is there once further surveys are done, Yapa said.
(Reporting by Doug Palmer; Editing by Jan Paschal ) Keywords: IMF/SRILANKA (doug.palmer@thomsonreuters.com; Tel: +1 202 898 8341; Reuters Messaging: doug.palmer.thomsonreuters.com@reuters.net ) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.