Sri Lankan Prime Minister says Rs. 300 billion cash infused to country’s economy
Prime Minister of Sri Lanka Ranil Wickremesinghe has reportedly stated that there has been a Rs. 300 billion cash infusion to the country’s economy following a host of recent measures taken to address the liquidity issue.
The Prime Minister has made these observations at the 20th anniversary of Chamber of Young Lankan Entrepreneurs (COYLE).
Wickremesinghe has been quoted as saying in the local media that the Treasury has been requested to release Rs. 60 billion to settle part of the dues to construction contractors and more will be released. Secondly, Central Bank’s relaxation of statutory reserves ratio twice has released Rs. 150 billion to the market.
“Under the Enterprise Sri Lanka program, Rs. 60 billion has been lent and under the Gamperaliya initiative, Rs. 6 billion was released late last year and there will be more in the pipeline,” the Prime Minister has been quoted as saying in the Daily FT.
The Premier has also highlighted some key achievements of the Government during the past four years whilst meeting the debt service challenge.
According to reports, among those listed were increasing the Government revenue to 63.5% of GDP in 2015 to 75%; primary balance which was a negative 2.8% of GDP or Rs. 302 billion in 2015 will be a positive 1.5% or Rs. 225 billion in 2019.
OSL take:
The Sri Lankan Prime Minister’s statement indicates the strength of the country’s economy. The infusion of cash into the country’s economy to address liquidity issues while showing the actions taken by the state to address economic concerns also indicates that the economy is on the right track. The country’s GDP has grown while the primary balance has also recorded positive growth. Therefore, foreign businesses/investors could confidently explore opportunities in Sri Lanka since there are many business/investment opportunities due to the ongoing development programmes.
| Article Code : | VBS/AT/13032019/Z_2 |