Sri Lanka posts net cash deficit of Rs. 1.91 trillion

Sri Lanka has posted a net cash deficit of Rs. 1,907.9 billion as at 30th September 2023, an increase of 38.1 per cent compared to Rs. 1,381.1 billion as at end September 2022, Finance Ministry fiscal department sources said.  

This was mainly due to the increase in the operational expenditure including interest payments and public investment by 52.2 per cent and 5.4 per cent respectively.

According to the ministry's latest fiscal management report, cash inflows to the Treasury by way of revenue and other receipts amounted to Rs. 2,028.2 billion, in the first nine months of the year 2023 as against the estimation of Rs. 2,446.5 billion, achieving the 82.9per cent from the estimate.

This was an increase of 49 per cent, compared to Rs. 1,361.9 billion in the same period of 2022.

Meanwhile, cash outflow for both recurrent and public investment amounted to Rs.3,936 billion in the first nine months of 2023 which is a 43 per cent increase compared to Rs. 2,743 billion over the same period of 2022.

However, increase in closing positive cash balance was Rs. 183.5 billion as at 30th September 2023 from Rs. 48.2 billion negative cash balance as at 30th September 2022.

It mainly represents an increase in net borrowing along with revenue and other receipts during the period, the report revealed.

(Bandula)