Government expects public investment to jump to 9.5 percent of GDP this year and says debt moratorium will give over US$ 500 million in BOP support

Standing left to right – Mr. Dinesh Jebamani (Chief Manager Liability Product Management and New Age Media – Seylan Bank), Mr.Sudesh Peiris (Senior Manager – Digital Banking Channels – Seylan Bank), Ms. S.Senevirathne (Representative of the Revenue Department – Western Province), Mr. Tilan Wijeyesekera (Deputy General Manager – Retail Banking – Seylan Bank) and Mr. Malik Wickremanayaka (Deputy General Manager – Operations – Seylan Bank)

Government expects public investment to jump to 9.5 percent of GDP this year and says debt moratorium will give over US$ 500 million in BOP support. Government expects public investment to jump to 9.5 percent of GDP this year and says debt moratorium will give over US$ 500 million in BOP support. Treasury Secretary P. B. Jayasundera said reconstruction after the Tsunami would cost up to Rs. 1.8 billion on his return from the meeting of Paris creditor nations.

He said debt moratoriums and IMF support would give stability on the BOP side and more room for budgeting.

The International Monetary Fund board agreed to a request by Sri Lanka on Friday for an extension on debt repayment this year, which will save the country US$ 113.5 million.

The fund said the moratorium on interest and capital payment was granted because the tsunami disaster has altered the economic outlook by increasing vulnerability for Sri Lanka this year.

Economists’ say the payment extension by the IMF will help strengthen the rupee and ease balance of payment difficulties like those that affected the country last year.

The Treasury Secretary says balance of paymen