New Paint — Budget Update 3

Finance Minister K N Choksy told parliament that the bonds will be issued in both rupee and US dollar denominations.

rnrnDollar denominated bonds will be limited to non-resident Sri Lankans, while the local investors will be able to invest in the rupee bond with tax-exemptions on interest.

rnrnChoksy estimated total government borrowing budgeted for 2002 at Rs. 329 bn with Rs. 70 bn scheduled from foreign commercial and concessionary lending.

rnrnThe budget proposals presented a deficit target of Rs. 135 bn or 8.5 percent GDP for 2002.

rnrnThe treasury bill borrowing limit, which now stands at Rs. 175 bn, will be increased to Rs. 250 bn to provide flexibility to the borrowing programme, Choksy said.rnrnrnrnrnrn