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New Paint — Budget Update 3

Finance Minister K N Choksy told parliament that the bonds will be issued in both rupee and US dollar denominations.
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rnrnDollar denominated bonds will be limited to non-resident Sri Lankans, while the local investors will be able to invest in the rupee bond with tax-exemptions on interest.

rnrnChoksy estimated total government borrowing budgeted for 2002 at Rs. 329 bn with Rs. 70 bn scheduled from foreign commercial and concessionary lending.

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rnrnThe budget proposals presented a deficit target of Rs. 135 bn or 8.5 percent GDP for 2002.

rnrnThe treasury bill borrowing limit, which now stands at Rs. 175 bn, will be increased to Rs.

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250 bn to provide flexibility to the borrowing programme, Choksy said.rnrnrnrnrnrn
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