Financing Agencies should be promoted to lend to developing countries under concessional terms since global liquidity condition are yet to recover to pre-crisis levels observed Foreign Minister Rohitha Bogollagama, in his discussions on the World Economic Situation, at the pre-Commonwealth Heads of Government Meeting on Wednesday at Port of Spain, Trinidad & Tobago.

He opined that developed countries must ensure that policy decisions taken by them do not add to the hardships faced by the people of developing countries by creating unemployment.

Bogollagama pointed out that developed countries should not resort to protectionism and special stimulus packages provided for developing countries taking into account their economic needs. He further stated that the developed countries should also make available funds on concessional terms and conditions for developing countries to continue their development activities.

He called on multi lateral agencies and development partners to consider a moratorium on the repayment of debt. The Minister pointed out that challenges which include food and energy security and climate change also need enhanced international cooperation, for which the Commonwealth network could provide the framework.

Outlining the position on the reform of international institutions, Minister Bogollagama pledged Sri Lanka’s support on this aspect. He pointed out that development assistance extended by the international institutions is often combined with political and global objectives. Such complexities have created difficulties for the recipients as important decisions taken by the development partners usually do not take into account the ground conditions objectively of the recipient countries, the Minister warned.

The Foreign Minister emphasised that the global coordinated efforts are needed to ensure that global crises such as those recently experienced do not erupt in the future. Such crisis he said needed to be dealt with global initiatives, as in the case of the allocation of Special Drawing Rights by the IMF in response to the request made by G20.