Sri Lanka deficit to move down with lower rates, PPPs: CB Governor

Aug 06, 2013 (LBO) – Sri Lanka’s budget deficit will narrow and debt will slow with falling domestic interest rates and public private partnerships in infrastructure, Central Bank Governor Nivard Cabraal said. “We will see a huge reduction in interest costs,” Cabraal told a sovereign and banking forum organized by Fitch.

In 2014 the budget deficit is likely to be about 5.2 percent of gross domestic product, he said.

Private investments in infrastructure would also increase, he said.

The Colombo port has already seen an investment by a port company.

Public Private Partnerships will also increase in the future, especially in roads.

Chinese firms have been given Sri Lanka’s largest toll road project.