Government allocates Rs. 2.2 trillion for debt servicing

Government allocates Rs. 2.2 trillion for debt servicing

Written by Staff Writer

09 Jan, 2019 | 7:29 pm

Colombo (News 1st) – According to the Appropriations bill that was presented to the cabinet, Rs. 2.2 trillion of the government expenditure has been allocated for debt servicing.

The finance ministry stated that this is the highest debt repayment done by a government for a single year in the history of the country. It  also noted that the Government’s objective is to increase government income to 15% as a percentage of GDP in 2019.

Mangala Samaraweera stated that the Government is planning to increase state revenue by 7% to Rs. 2.39 trillion this year. Analysts stated that due to the accumulated debt during the previous years, debt servicing in the coming years is likely to be higher. They stated that 95% of the state revenue will be used for debt servicing this year.

Economist Dhananath Fernando speaking to News1st stated that the country should look into means of reducing Government expenditure. He stated that one of the most efficient ways of achieving this task is to limit the size of the Government and take care of the loss-making state institutions. Fernando explained that while doing this Sri Lanka should also focus on improving tourism, exports and FDIs.

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