Sri Lanka targets deficit of 6.2-pct in 2012

Aug 19, 2011 (LBO) – Sri Lanka will budget for a deficit of 6.2 percent of gross domestic product in 2011 down from a planned gap of 6.8 percent in 2010, information minister Keheliya Rambukwelle said. The government will keep state investments at 6.0 percent of GDP.

The state is planning to bring down national debt to 75 percent of GDP from the current 80 percent of GDP with the economy ticking away at 8.0 percent he said.

The cabinet of ministers had given the nod for the Treasury to prepare the budget on a medium term expenditure framework for 2012-2014.

The budget will be operated within inflation of 6 to 7 percent.