Sri Lanka to replace ‘unrealistic’ budget, in talks to extend World Bank aid

Author of the article: Reuters Uditha Jayasinghe and Alasdair Pal COLOMBO — Sri Lanka plans to replace its current “unrealistic” budget and is in talks with the World Bank to extend its support by $300 million to $700 million, the country’s finance minister said on Wednesday. The island nation, hit hard by COVID-19 and short…
Sri Lanka to replace ‘unrealistic’ budget, in talks to extend World Bank aid

Author of the article:

Reuters

Uditha Jayasinghe and Alasdair Pal

COLOMBO — Sri Lanka plans to replace its current “unrealistic” budget and is in talks with the World Bank to extend its support by $300 million to $700 million, the country’s finance minister said on Wednesday.

The island nation, hit hard by COVID-19 and short of revenue after steep tax cuts by President Gotabaya Rajapaksa’s government, is critically short of foreign exchange and has sought an emergency bailout from the International Monetary Fund.

Rampant inflation and shortages of imported food, fuel and medicines have led to weeks of protests that have occasionally turned violent.

“The existing budget is unrealistic, given our challenges,” finance minister Ali Sabry told a parliament session.

“We will bring in a new budget that will seek to address core issues of low public revenue.”

Sabry said he wanted to increase tax revenue as a share of gross domestic product to 14% within the next two years, from 8.7% now.

Sri Lanka will appoint within the next two weeks financial and legal advisers for a proposed restructure of its sovereign debt, Sabry said, adding that the government was keen to work with the IMF on structural reforms.

“This is the only way to put the economy on a sustainable footing,” he said. (Reporting by Uditha Jayasinghe and Alasdair Pal; Editing by Clarence Fernandez)

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
Gold groups grapple with uncertain outlook for prices and costs
Read More

Gold groups grapple with uncertain outlook for prices and costs

'At US$1,500 you put the [gold] mining industry out of business' Author of the article: Financial Times Harry Dempsey and Leslie Hook in London Spot gold was trading at around US$1,760 on Friday afternoon. Photo by DAVID GRAY/AFP via Getty Images files The head of the world’s second-largest gold miner has played down fears of…
Operations Update and Initiation of Arbitration
Read More

Operations Update and Initiation of Arbitration

CALGARY, Alberta, Dec. 24, 2022 (GLOBE NEWSWIRE) — Jura Energy Corporation (“Jura”) is pleased to announce today that repair and testing of the Zarghun South sale gas pipeline, which was damaged due to flash floods, have been completed and the supply of sale gas has resumed from the Zarghun South Lease. The Zarghun South Lease…