Sri Lanka budget deficit narrows in first nine months: CB

Nov 29, 2016 (LBO) – Sri Lanka’s budget deficit narrowed to 4.1 percent of GDP during the first nine months of the year helped by an increase in tax revenue, the Central Bank said on Tuesday.

The budget deficit during the same period last year was 5.1 percent of GDP.

Government revenue was 9.6 pct of GDP during the first nine months, up from 8.5 percent of GDP during the same period last year. However, government expenditure increased by a smaller amount.

Government expenditure increased to 13.7 percent of GDP from 13.5 percent of GDP, during the first nine months of the year.

Tax revenue during the first nine months of this year increased 22 percent.

The economy is expected to grow more than five percent this year, and around 6.5 percent next year.

“We see a certain amount of buoyancy right across the board. There is an upward curve in terms of sentiment,” Governor Indrajit Coomaraswamy said.