ECONOMYNEXT – Sri Lanka’s cabinet of ministers cleared a request by the Finance Ministry raise a borrowing ceiling for 2021 by an extra 400 billion rupees, the state information office said.
The borrowing ceiling for 2021 will be raised to Rs3,397 billion rupees from 2,997 billion.
Sri Lanka was originally planning a budget deficit of 1,565 billion rupees. The borrowing ceiling however is higher than the deficit as it includes debt rollovers.
In June the administration presented a supplementary estimate to raise spending by 200 billion rupees.
Finance Minister Basil Rajapaksa said amid lockdowns Sri Lanka’s tax revenues are also down. (Colombo/Sept23/2021)