Adjusting budgetary estimates after Easter terror
View(s):Sri Lanka will be making a budgetary review in the second half of this year as government expenditure is expected to rise with payments for compensation and concessions and moratoriums granted mainly to tourism and other sectors affected by Easter terror attacks.
“Government will have to re-prioritise expenditure during the second half of 2019 budget in the face of anticipated slowing down in tax revenue after the unfortunate incident,” Central Bank Governor Dr. Indrajit Coomaraswamy told reporters in Colombo on Friday.
He was confident that the country will weather the storm as the country’s economy, except tourism and retail sectors, is untouched and quickly recovers from the Easter terror.
Only the confidence and sentiment of investors and foreign travellers had been affected but there was no damage caused to agriculture or industry, he said.
Dr. Coomaraswamy expressed the belief that the country will be able to manage its external debt obligations while maintaining foreign reserves at a sufficient level of 3 to 4 weeks of imports.
Foreign exchange outflows have improved making the rupee appreciation by 3.6 per cent upto April compared to statistics in December last year, he disclosed.
(Bandula)