Sri Lanka hopes to move to budget deficit of 4.0-pct of GDP

July 29, 2013 (LBO) – Sri Lanka is hoping to cut the budget deficit to 4.0 percent of gross domestic product and generate a 2.0 percent revenue surplus, Treasury Secretary P B Jayasundera said. Sri Lanka ran a 6.4 percent of gross domestic product overall deficit in the budget in 2012 and a 1.4 percent revenue deficit before capital spending.

In 2013 the overall budget deficit is planned to be 5.8 percent of gross domestic product with 0.1 percent marginal revenue deficit.

“A further reduction in the fiscal deficit towards 4.0 percent in GDP by generating a revenue surplus in a magnitude of around 2.0 percent of GDP through an enhanced revenue effort is a major component of government strategy,” Jayasundera said.

He was speaking to economists and insurance industry sector representatives at the launch of a book on insurance law and practice by Wickrema Weerasuriya, a specialist in banking law who is now the island’s insurance ombudsman.

Amid a slowing economy, meeting the 2013 targets had been tough.

In the first four months of 2013 Sri Lanka ran a revenue deficit of 1.8 percent of GDP and an overall deficit of 3.9 percent of GDP.

Sri Lanka has not been able to