Confidence boost by Sri Lanka govt will draw foreign funds to rupee treasuries: Cabraal

ECONOMYNEXT – Sri Lanka’s new government will boost confidence and attract more funds into rupee Treasury bills and bonds, Nivard Cabraal senior economic advisor to Sri Lanka Prime Minister said.

“Government will instill confidence in the economy, which will attract foreign investments into Treasury bills and bonds,” Cabraal said.

Sri Lanka is cutting value added tax from 15 to 8 percent from December and has also announced other tax cuts in a bid to boost the economic activity which has taken a beating due to two currency crisis coming in close succession.

He said the shortfall in revenues will be compensated by an future reduction.

Overall debt service costs will also fall due to an appreciation of the currency, he said. (Colombo/Nov29/2019)