Sri Lanka 2011 budget target to be met: Central Bank

Nov 21, 2011 (LBO) – Sri Lanka is likely to meet the deficit target of 6.8 percent of gross domestic product set for 2011, with the gap in the first eight months contained at 5.3 percent of GDP down from 5.6 percent a year earlier, the Central Bank said. In rupee terms the gap increased to 349.6 billion rupees in the first eight months of 2011 from 314.5 billion rupees a year earlier.

The Central Bank in a report ahead of a 2012 budget to be presented to parliament Monday said the current account deficit of the budget fell to 1.8 percent in the first eight months, lower than 2.5 percent a year earlier.

The gap however had already exceeded the full year projection of 0.8 percent of GDP.

The ‘primary deficit’ of the budget (total revenues less interest payments) had increased to 1.4 percent of GDP in the first eight months from 1.3 percent of GDP a year earlier, the Central Bank said.

Revised data also showed that revenues were slightly lower than the full year target, but current expenditures were broadly on track. The data also indicated that nominal GDP had been revised up.

Revenues grew 16.2 percent to 575.7 billion rupees during the first eight months, slightly behind the full year growth target growth of 17.8 percent.