Sri Lanka on track to meet deficit, FDI targets: Treasury Secretary

July 04, 2011 (LBO) – Sri Lanka is “well on track” to keep the 2011 budget deficit within 7.0 percent of gross domestic product, and foreign direct investments of 2.0 percent of GDP, Treasury secretary P B Jayasundera said.

With first quarter GDP at around 8.0 percent, per capita GDP is on track to grow to 2,800 dollars by year end, up from 2,400 dollars last year.

In the first four months of the year Sri Lanka had an overall budget deficit of 2.7 percent of GDP though the revenue deficit was higher than the year end target.

Sri Lanka’s state revenues rose 19.8 percent to 358.2 billion rupees in the five months to May from a year earlier, with a surge in imports helping pad up revenues, a finance ministry report said.

“So far the indications are that the government is well on track to realizing a 7.0 percent (of gross domestic product deficit),” Jayasundera told Sri Lanka Economic Summit 2011, organized by the Ceylon Chamber of Commerce.

Jayasundera said the government was keeping inflation around 7.0 percent and the deficit in check, giving a stable environment for the private sector to invest. This year the government planned a d