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HRW had raised concerns over IMF support to the country in an October 14 letter to the IMF Managing Director Dominique Strauss-Kahn. “The Sri Lankan economy is facing a serious crisis and regardless of one’s opinion of the human rights situation in that country, the collapse of the economy cannot be considered a reasonable outcome. The people of Sri Lanka—and especially those who are most vulnerable—cannot be held responsible for the current situation. Our role now—as set out in the Articles of Agreement which govern the IMF—is to do everything possible to prevent a collapse, the effects of which would be catastrophic for the people, and especially for the poorest parts of the population,” Strauss-Kahn said in a Nov. 5 letter to HRW Asia division Director Brad Adams, posted on the IMF website. Last week, the IMF approved the second tranche of a $2.6 billion standby credit facility.

“Like you, I share the distress of the refugees. The image of those suffering children and of those families set adrift is to me intolerable. The fact is, however, that the economic crisis would only worsen their situation,” the IMF chief said, adding “The aim of our support, therefore, is to provide the resources necessary to prevent a full-blown economic crisis, contribute to reconstruction efforts, and sustain social spending aimed at protecting the poor. In addition, this programme also provides the necessary framework without which international donors would be unable to provide assistance in the areas of infrastructure, roads, hospitals, and schools.

Strauss-Kahn however noted that, ‘this in no way’ prevents the fund from putting in place the safeguards needed to ensure that the resources provided are ‘used correctly’.

The IMF chief said the government has committed to creating a social safety net for the displaced as quickly as possible, considerably cut military spending in the 2010-2011 period and use these savings to finance expenditure that will help the country’s most vulnerable people.

He said the IMF will continue to monitor progress in these areas and ‘we look forward to continuing to receive feedback from HRW as well as others’.