March 22 (Reuters) - The International Monetary Fund
(IMF) is allowing Sri Lanka to utilise funds from its latest
bailout for fiscal support, unlike previous loans that could
only be used to ease balance of payments crises, central bank
governor Nandalal Weerasinghe said in an interview with
Bloomberg.
Upon receiving the funds from the IMF, the monetary
authority can buy foreign exchange and provide the government an
equivalent amount of rupees to spend, Weerasinghe told Bloomberg
on Tuesday.
"In line with IMF fiscal deficit targets, instead of raising
money from domestic markets, they can use that money to finance
the budget," the report quoted Weerasinghe as saying.
(Reporting by Yana Gaur in Bengaluru; Editing by Edmund
Klamann)
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