IMF cautions S Lanka over mounting foreign debt

COLOMBO, July 31 (AFP): Sri Lanka's economy was among the fastest growing in Asia, but it was vulnerable to sudden external shocks due to high levels of foreign commercial borrowings, the IMF said Wednesday.
The International Monetary Fund (IMF) warned that the Indian Ocean island remained vulnerable despite economic gains after ending decades of ethnic war in May 2009.
"Recent improvements in the trade and current account balances notwithstanding, Sri Lanka remains vulnerable to external shocks," the IMF said after its latest consultations with Sri Lankan authorities.
"The (IMF) staff urges caution with respect to external borrowing (of Sri Lanka) through the banking system."