Sri Lanka must repay US $5.9 billion this year, including a $3 billion fresh borrowing – CBSL

Sri Lanka’s government plans to increase government spending by 13.2% from last year to nearly over US $ 24.5 billion or Sri Lankan Rs. 4.47 trillion, the Finance Ministry has said recently. Accordingly Government also plans to maintain the 2019 Budget deficit at 4.8% of GDP, unchanged from an estimated 4.8% in 2018.

Sri Lanka’s Finance Minister Mangala Samaraweera will present the 2019 Budget on 5 March 2019, the statement from the ministry said recently. Finance Minister had also sought Cabinet approval for a Rs. 2.1 trillion borrowing next year, up 10.5% from its estimate for 2018.

Meanwhile the country’s Central Bank Governor Dr. Indrajit Coomaraswamy had said that Government must repay a record US $ 5.9 billion in 2019, including a US $3 billion fresh borrowing, addressing the reporters recently. The Sri Lanka Government, however, has not revised country’s medium-term Budget deficit target of 3.5% of GDP by 2020.

Reports outlined that the Government of Prime Minister Ranil Wickremesinghe-led centre-right United National Party (UNP) has planned some key economic projects to win votes from rural areas, where nearly 70% of the island nation’s voters are registered.