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Sri Lanka Finance Minister wants big rate cut, IMF show of support

Oct 31, 2015 13:41 PM GMT+0530 | 2 Comment(s)

(Reuters) - Sri Lanka's Finance Minister on Thursday called for the country's central bank to make a big cut in interest rates and for the IMF to give a show of support as he questioned their recent growth forecasts for the country.

"They were wrong," Ravi Karunanayake told Reuters in an interview, referring to the IMF's recent growth forecast of 5-5.5 percent for this year. "I think it will be in the range of 6.5-6.7 percent."

With the IMF expected to decide on a post-programme monitoring in mid-November, he said: "We would like them to see what we have done and show that they are with us."

He also called for the country's central bank to make a big cut in interest rates to as low as 4-5 percent.
He added that although the rupee could fall as the dollar strengthened, he expected it to stabilise and find its own equilibrium once outflows are stemmed.

He expected currency reserves to rise to about $10 billion (roughly six months of import cover), from just under $7 billion reported in July.

Speaking ahead of the country's Budget in about two weeks' time, he said the government intended to reduce corporate taxes, which vary widely but can be as high as 35-40 percent, by "a meaningful proportion".  (LONDON, Oct 29/2015)


 

2 Comments

  1. sacre-blieu November 01, 10:55 AM

    Why pamper a the many government senior officials, parliamentarians, local government politicians, etc., with duty free permits. Where is the law of equitable justice. This was introduced during the time of Ronnie De Mel , and the then UNP government manipulated certain laws and privileges to suite their own ends.

  2. sacre-blieu November 01, 09:29 AM

    Corporate taxes should be equitable and not biased or contradictory, and the accounts should be more strictly examined by selecting at a random about 20 of them to be examined and reviewed annualy by the Auditor General, who also should have carefully selected competent officials on this. Most quoted companies show fictitious accounts, where their personal expenses are well hidden in the various categories and to the neglect of the shareholders, mostly the minority group.

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