Sri Lanka budget on track; land sales to boost revenues in 2011

Jan 24, 2011 (LBO) – Sri Lanka is to raise up to 500 million US dollars from land sales in 2011, a top official has said as November data indicated that the 2010 budget has been contained within targets. Treasury secretary P B Jayasundera was quoted as saying in Bloomberg, a newswire that Sri Lanka hoped to raise about 500 million US dollars from land sales to developers in 2011.

Sales of two blocks of land near a Colombo beachfront to developers have been valued at 250 million dollars.

November fiscal data showed that the budget deficit was broadly in line with revised data presented with the budget for 2011, though pressure on the domestic economy from state borrowing and spending was lifted in October with the sale of a billion dollar bond.

Last year inflation was contained at 6.9 percent and bank borrowings by ordinary citizens and business rose without putting pressure on rates.

The November fiscal data indicated that total revenues were up 12.6 percent, with tax revenues up 16.7 percent.

Current expenditure, the key source of pressure on the budget was contained at 852.9 billion rupees, up 3.1 percent. Current expenditure, where state salaries is the biggest cashflow item