IMF approves seventh tranche of Sri Lanka loan

By Ranga Sirilal | Reuters
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The International Monetary Fund late on Monday approved disbursement of the seventh tranche of a $2.6 billion loan to Sri Lanka, saying its economic growth was strong while warning of the risk that excess liquidity could stoke inflation.

The impact of crop damage caused by flooding in January and February will be limited owing to the size and strength of the economy, the IMF's executive board said in a statement.

The sixth tranche of the loan is worth $218.3 million, part of a loan programme approved in July 2009 after Sri Lanka's government emerged victorious in a quarter-century separatist war.

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