Sri Lanka’s budget 2016 targets budget deficit of 5.5 pct- of GDP

Aug 03, 2015 (LBO) – Sri Lanka wants to reduce the budget deficit to 5.5 percent of gross national production over 2016 to 2018, maintaining the state investment at around 6 to 8 percent of GDP, Cabinet Spokesman Minister Rajitha Senaratne said.

The Finance Ministry had informed the cabinet that it has begun preparations for the 2016 budget and it will be on the principle of ‘zero-based budgeting’.

The budget will also encourage to make private sector investment between 22 – 24 percent of the GDP to maintain the total investment level of the economy at 30 percent of the GDP, Senaratne said.

The government plans to achieve an economic growth beyond 8 percent in the medium term framework of the budget 2016.