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Sri Lanka says settles Rs196bn in 2019 budget arrears

ECONOMYNEXT – Sri Lanka has settled 196.6 billion rupees in budget arrears out of a total of 240.7 billion rupees, Finance Minister Mahinda Rajapaksa had informed the cabinet of ministers.

Another 44 billion rupees remains to be paid.

The 240 billion rupees is about 1.5 percent of the 2019 gross domestic product.
Sri Lanka has a habit of running arrears on the last months of the year and paying them in the first quarter.

When new administrations come to power, complaints are made.

In 2015 the new administration also claimed there were contracted projects which had not been paid or cash had been advanced from state banks.

Information Minister Gunewardene said arrears to fertilizer companies had made it difficult for them to import new stocks, but their accounts had now been settled, allowing them to import fresh stocks. (Colombo/June06/2020)