The IMF said Sri Lanka’s foreign reserves are at a comfortable level, as it reviewed the island’s economy for the release of a third payment of the 2.6 billion dollar loan.

Briefing the media in Colombo, Brian Aitken, IMF’s Mission Chief for Sri Lanka said the growth rate was expected to settle at 3.5 percent by the end of this year. The island’s gross reserves are now at more comfortable levels and the risk of an imminent balance of payment crisis was no longer present.

The Government’s economic policies have so far been in line with the programmes. All end September targets have been met. Monetary growth is picking up as expected. Dr. Aitken said the actions initiated by the Central Bank to rebuild reserves while reducing policy interest rates are appropriate.