Sri Lanka budget deficit 3.9-pct of GDP up to April 2013

(L-R) : Jeevith Senaratne, Director Operations - Star Garment Group; Shanaka Rabel, Group Chief Digital and Transformation Officer - Stretchline Holdings Ltd; Janaka Botejue, Chairman – Bernard Botejue Industries; Sanjeewa Kodikara, Chief Information Officer- Hirdaramani Group

July 02, 2013 (LBO) – Sri Lanka has posted a budget deficit of 3.9 percent of gross domestic product for the first four months of 2013, against a full year target of 5.8 percent of GDP, finance ministry data showed. State revenues for the first four months was 326.6 billion rupees, up from 313.9 billion rupees a year earlier and current expenditure was 471.3 billion rupees (5.4 percent of GDP) up from 460.6 billion rupees (6.1 percent of GDP) in 2012.

The revenue deficit, or the gap in the current budget was 157.0 billion rupees up from 133.9 billion rupees (-1.8 percent of GDP).

The capital budget 195.1 billion rupees giving an overall deficit of 343.5 billion rupees or 3.9 percent of GDP for the four months, up from 285.5 billion rupees (3.8 percent of GDP) last year.

The deficit was mostly filled by bank borrowings of 172.6 billion rupees. Non bank borrowings made up 65.1 billion rupees and foreign investments in Treasuries were 63.9 billion rupees.

The finance ministry is forecasting a provisional overall deficit of around the same level of 352.2 billion rupees or 4.0 percent for the first half of the year, indicating revenues of close to 200 billion rupees for the two months May and June.

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