The International Monetary Fund advised Sri Lanka to resurrect the stalled peace process if it wants its economy to recover. The lender made the recommendation in a statement following a mid-year review, which indicated the country?s swelling budget deficit, meager privatization revenues and rising inflation. Nevertheless, Sri Lanka received praise for its "prompt and effective" relief after the deadly December 26 tsunami. The agency then called on Colombo to ensure the efficient and transparent management of the post-tsunami reconstruction through "mobilizing donor assistance effectively and maintaining macro-economic stability." Currently, however, the joint mechanism for tsunami aid delivery a partnership between the government and the Tamil Tigers is in limbo following the ruling by Sri Lanka?s high court that major portions of deal are unconstitutional. (Source: IMF warns Sri Lanka heading for more trouble after tsunamis/Agence France-Presse)
