Finance Ministry takes unified approach on capital investment projects

The Finance Ministry is to take a unified approach to prioritising capital investment projects based on explicit criteria early in the budget process.

All projects included in budget documents are from the list of assessed and prioritised projects, national budget department sources revealed.

In 2020, only 40 projects out of 100 projects in the pipeline were implemented due to island-wide lockdown, ministry data shows.

For 2021, 90 projects have been identified as priority projects for implementation. The total investment for new projects during 2022-2024 is Rs. 234 billion and this accounts to 8 per cent of the total investment.

As such, priority needs to be given to projects that addresses the post crisis recovery needs, an official disclosed.

Financing the investment projects is crucial considering the high debt burden and uncertainties in the speed of the recovery.

Hence, non-debt financing options such as FDIs, green bonds etc. should be encouraged he said adding that moreover, the United Nations 2030 Agenda provides a blueprint to achieve a more sustainable future for all.

The government has in place a national agency for public-private partnerships to consider opportunities for private-sector investment in public-sector entities and initiatives.