The IMF, (International Monetary Fund) will visit Sri Lanka on May 12 for discussions on the budget.
“We will be conducting a qualitative assessment, We are looking for a good budget with some serious commitment to contain the fiscal deficit. which will be the key determinant of the disbursement of the third tranche under the $2.6 billion aid package,” said Koshy Mathai, the IMF’s resident representative.
Sri Lanka’s Treasury Secretary P.B. Jayasundera has mentioned that the country plans to nearly halve its fiscal deficit in three years as the end of a 26-year civil war is certain to bring in economic growth and boost other revenue.
Businessweek mentioned that Sri Lanka’s budget shortfall is targeted to narrow to 5 percent of gross domestic product by 2012, from 9.7 percent last year and 7.5 percent in 2010, quoting Jayasundera. Under the IMF loan approved in July, Sri Lanka was forecast to cut its deficit to 6 percent of GDP in 2010 from 7 percent last year, and to reduce it to 5 percent by 2011
The Sri Lankan Rupee, which has gained 0.7 percent this year, traded at 113.6 as of 3:48 p.m. in Colombo, according to data compiled by Bloomberg.
Standard Chartered Plc currently forecasts the rupee will appreciate to 113 per dollar by the end of 2010.