Government needs to find resources for projects

by Dhaneshi Yatawara

Obtaining cheaper international borrowings will be a tough option that the government need to look in to, said Secretary to the Ministry of Finance Dr. R.H.S. Samarathunga. This is not a new option we are considering, said Dr. Samarathunga, adding that the Government need to find sources to finance projects and programs of the country.

The Government still have space to raise the capital through loans as the country has not exceeded it's borrowing limit, Finance Minister Ravi Karunanayake told the media late last week.

"The country borrowing limit is at 850 billion rupees and we still have room to raise another 35 to 50 billion rupees through treasury bills," added Karunanayake.

The outstanding debt of the country by end 2014 was Rs. 7,373 billion.

This reflected a per capita debt of Rs. 357,233. The government predicted that the total debt will increase to Rs. 8,817 billion which will also increase the per capita debt to about Rs. 427,220, as stated by the Finance Minister in the Budget amendment (interim budget) of the new government presented to the Parliament on January 29.