The reason is simple: IMF has no option but to proceed with the loan to Sri Lanka.
Why? For two good reasons, amongst many other.
The UN Security Council has very clearly demonstrated its position against Sri Lanka. All 15 members unanimously agree that they are not in a job of penalising Sri Lankan government and that they want to help the government of Sri Lanka address the problem. Russia and China have very clearly stated that the problems in Sri Lanka are not a global threat and that there is no need for the UN to interfere since there is no mass genocide or bloodbath. US cannot afford to utter a word – with ghosts of Abu Ghraib and such coming out of their closet these days. Recent occurrences in the Swat Valley where 500,000 civilians are rendered homeless doesn’t work in their favour either.
Secondly, but most importantly, the West is afraid of the “friends” Mahinda Rajapakse has made in the hour of our need. Cuba, China, Russia, Iran, Pakistan... all the top-rankers of the “friendly” nations in the eyes of the West. If the IMF refuses the loan, China would be glad to extend their helping hand, with a big smile on its face. Iran and Russia also would pitch in, they are in need of “friends” around the world. China has vested interests in exploring oil in Sri Lankan offshore, they are already in Hambantota. Surely but slowly, China is expanding its global presence: Sub-Saharan Africa is a good example of the Chinese dominance in areas where the West thought was “too insignificant” for them to bother. Besides, Mahinda Rajapakse did not clear the Western Coast for nothing – what lies beneath the “humanitarian mission” are also means to our economic advantage.
If Miliband thinks he can withhold the loan, he must be day-dreaming. In case, by any fluke chance if his dream comes true, he is going to wake up to a worse nightmare – in seeing the world’s first democracy to appoint a female head of the country, partying with the communists and rebels.
Would the West risk it? I don’t think so. So, collect some greenbacks - they are going to hit Rs 150 a piece, I was told.