Sri Lanka state revenues reach last year’s level in August: Treasury official

Sept 15, 2009 (LBO) – Sri Lanka’s state revenues for August had reached last year’s level in line with a recovery in import trade and domestic economic activities, and is expected to show a positive growth in this month, an official said. “In August we have reached break-even level and we are expecting revenues will continue to move up in the next few months,” director general of fiscal policy in the Treasury, S R Attygalle said.

“This is in line with the general improvement in economic activities in the country and economic growth.”

In the 6-months to June Sri Lanka reported a revenue drop of 6.15 percent over last year. But it was smaller than the 9.6 percent drop reported in the 4-months to April indicating a steady improvement.

Attygalle said the Treasury was still spending on infrastructure and which was still above 5.0 percent despite a difficult environment.

He said over the past few years infrastructure spending has been pushed up to 6.0 percent and it was visible in the countryside with roads and other infrastructure that were coming up.

Sri Lanka is hoping to keep a 7.0 percent of the gross domestic product deficit in 2009 on a program agreed with the International Monetary Fund, and Attygalle said the