CABINET APPROVES DEBT REDUCTION PLAN
The Sri Lankan cabinet approved the Central Bank of Sri Lanka’s (CBSL) proposals to achieve the government’s target of reducing the debt to GDP ratio to 70 percent by 2020.
These ideas were proposed by the Central Bank in November 2017 to the Cabinet Committee on Economic Management (CCEM).
CBSL stated that the debt to GDP ratio could be improved by reducing the government budget deficit to decelerate debt accumulation.
The options recommended in the cabinet paper include achieving revenue targets stated in medium-term fiscal projections, encouraging domestic and foreign currency inflows to the government, and strengthening the financial standing and operations of major state owned businesses.