Mr. Cabraal says the IMF is expected to approve the loan 'very soon'

Central Bank Governor, Ajith Nivard Cabraal told BBC Sandeshaya that the technical stage of the loan is already completed and the IMF directors are soon expected to approve the loan.

“There are indications that it is happening very soon,” he said.

IMF Managing Director Dominique Strauss-Kahn was reported in media saying that Sri Lanka needs the help and talks were still underway on the loan.

US and UK views

Mr. Cabraal said it is a clear indication that the loan will soon be approved.

US Secretary of state, Hillary Clinton, has reportedly said that it is inappropriate to release the loan to Sri Lanka due to the current war situation in the island.

British Foreign Secretary David Miliband has earlier expressed similar views.

However, Central Bank governor says the IMF only takes decisions based upon economic factors.

“The politics does not play any role for IMF decisions and the IMF only deals with Central Banks not governments,” he said.

Mr. Cabral added that the loan will be used to sort out the balance of payment.