ldblquote 2001 was one of the worst years in terms of economic performance. Poor monetary and fiscal management was compounded by a series of external and internal shocks,
dblquote he said addressing a Norwegian Aid delegation on Sri Lanka
quote s economic revival plan.
rnrnHefty military spending, a stalled privatization programme and mounting losses at key state corporations resulted in the budget deficit overshooting its target of 9.5 percent to 11 percent last year. Inflation also shot up to 12 percent during the period.
rnHe said the government was targeting a budget deficit of 8.5 percent of GDP in 2002, by curbing expenditure lquote without effecting the implementation of donor funded projects
rnldblquote Over the medium term, we are hoping to reduce the budget deficit to around 6 percent of GDP and to increase the growth rate to over 7 percent in the medium term.
rnThe government has already indicated its commitment to further liberalizing and deregulating the economy.