Sri Lanka says it values ties with India

Sri Lanka has said it greatly values its ties with India which stood by the island nation in the war with the Liberation Tigers of Tamil Eelam (LTTE) and helped in getting a $2.6 billion loan from the IMF this year.

Home affairs minister Sarath Amunugama told parliament that prime minister Manmohan Singh had strongly supported Colombo's case for the loan saying in case the IMF did not approve the loan, India would provide the required funds.

"Indian prime minister Dr Manmohan Singh had told the IMF that the loan to Sri Lanka must be given. If they do not approve it, then we (India) will not hesitate to give the loan Sri Lanka asks. That is the kind of relationship we have with India," Amunugama said.

The IMF had cleared the $2.6 billion loan to Sri Lanka in July after long deliberations. It would be provided in eight instalments with the first tranche of over $300 million disbursed immediately. The last installment is to be given in March 2011.

Amunugama, who is also the deputy minister for finance and planning, said finance minister Pranab Mukheree had also spoken to IMF authorities in connection with the loan, according to The Daily Mirror newspaper.

"I want to place this on record. Indian finance minister Pranab Mukherjee telephoned the Indian representatives of the IMF and asked them to canvass for the approval of this loan to Sri Lanka," The Mirror quoted him as saying in the House while seeking approval of funds for the defence ministry.