Colombo, December 24 :

The International Monetary Fund (IMF) announced today it was closing its office in Sri Lanka from next month as the embattled island no longer had a borrowing programme with them.

“The decision reflects the evolving nature of the IMF’s relationship with Sri Lanka, with Sri Lanka no longer having a program with the IMF,” the fund’s senior resident representative for Sri Lanka, Luis Valdivieso said.

He said the decision was also was taken in the context of the overall declining budget available to the IMF to maintain an office in Colombo.

The Washington-based fund will continue to maintain a close relationship with Sri Lanka, with staff visiting regularly to exchange views with the authorities, he said. “The IMF also remains firmly committed to the government’s efforts to promote sustained economic growth and poverty reduction,” he said.

On Friday, the fund warned Sri Lanka to settle its long running ethnic conflict that has claimed over 60,000 lives since 1972. “Sri Lanka’s near- and medium-term economic prospects depend critically on progress on the peace front and on implementing essential reforms,” IMF said.