Sri Lanka says IMF seems to be taking political factors into consideration

The IMF spokesperson in Washington, Caroline Atkinson said no date had been set for the board meeting to consider the application.

But, she said the discussions were continuing.

The request from Sri Lanka has been held up for months after pressure from the United States and other western nations over its handling of the final stages of the war against Tamil Tiger rebels.

It is alleged that thousands of civilians were killed in the onslaught. Sri Lanka denies the charges.

It says it needs the loan to boost the war-ravaged economy.

The Sri Lankan trade minister, G L Peiris who's in Washington for talks earlier said the IMF had never taken political factors into account, and now appeared to be doing so indirectly.

He said it would set a dangerous precedent.

“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”, he told AFP news agency.