Sri Lanka's 2015 budget deficit hits 7.2 pct of GDP

Sri Lanka's 2015 budget deficit hits 7.2 pct of GDP
Jan 08, 2016 17:52 PM

COLOMBO, Jan 8 (Reuters) - Sri Lanka's budget deficit overshot to 7.2 percent of gross domestic product (GDP) in 2015, against a revised target of 6.0 percent, swelled by unexpected payments for contractors, Finance Minister Ravi Karunanayake said.

The minister had revised the 2015 target to 6 percent of GDP on Nov. 20 from the original 4.4 percent, due to unexpected spending and a revenue fall.

But on Friday, Karunanayake told Reuters "Last year's budget deficit was 7.2 percent."

The new figure puts the deficit much higher than the 5.5-6.0 percent the International Monetary Fund had estimated it would be.

The accountant-turned-politician said the government had to spend heavily on contractual payments for infrastructure projects started by the previous government led by Mahinda Rajapaksa, who was defeated in polls in January 2015.

Also, the new government implemented some populist policies.

"We ensured that all that was to be paid was put in the last year's budget," the minister said. "Why should we put it in this year?"

For 2016, Sri Lanka aims for a budget deficit of 5.9 percent of GDP.

The IMF has warned Sri Lanka not to have loose monetary and fiscal policies, and urged structural reforms to safeguard economic stability.

Amid heavy borrowing to cover the budget deficit, Sri Lanka's rupee has hovered around record lows since the central bank floated it on Sept. 4. It has fallen around 6.6 percent since then.

Karunanayake said the floating rupee has not helped boost exports.

"To be very frank, an approach will be looked at. We will control (the rupee)," the finance minister said when asked the steps government is contemplating to ease pressure on the rupee.

BALANCE OF PAYMENTS PRESSURE

A decline in foreign reserves may limit the government's attempt to defend the rupee, analysts say. Sri Lanka has already decided to seek an IMF loan to support its balance-of-payments.

Sri Lanka last year borrowed $1.5 billion from an Indian currency swap, $2.15 billion through two 10-year sovereign bonds and more than $1.7 billion from development bonds to repay foreign loans while defending the currency.

Karunanayake admitted that the balance of payments will face pressure if there is a reduction in worker remittances, which totalled more than $7 billion in 2014.

He said the government is looking to get $3 billion-$4 billion in deposits from foreigners to help "overcome" balance of payments problems.

Sri Lanka's domestic banks have already received around $1.5 billion through such deposits, he said.

Sri Lanka ahead of others in good governance - PM

Sri Lanka ahead of others in good governance - PM
January 8, 2016  05:11 pm

Prime Minister Ranil Wickremesinghe says that a country which was sidelined by the international community and one the wolrd had no expectations from, has today come forward within just one year.

He was addressing the main national ceremony to mark the one year completion of the democratic governance, established under the leadership of President Maithripala Sirisena, held at the BMICH in Colombo today (Jan 8).

Wickremesinghe said that Pakistani Prime Minister Nawaz Sharif, who recently visited the island, told him that Sri Lanka is very lucky because the two major political parties were able to unite and form a government.

He told me that if it continues this way for several more years, Sri Lanka will be the leader in the region, the PM said.

“We ahead of others in good governance,” he said.

He stated that the January 8 revolution was the result of the entire country uniting irrespective of religions, race or politics.

The PM stated that a person told him one day that “this is not a revolution, it’s a miracle.”

“Within one year, a country which was sidelined and had no expectations from the world has today come forward. Everyone including the President made large sacrifices,” he said.

We can be immensely pleased with what we have achieved within this one year, he said, while thanking President Maithripala Sirisena for coming forward and giving leadership to the change.

Within this one year all the political processes have been commenced and that the laws which need approval from Parliament have already been prepared, Wickremesinghe stated.

He stated that Parliament will convene tomorrow (9) to prepare a constitution for the creation of a Constitutional Assembly and that good governance will be confirmed from there onwards.

He stated that there are those who oppose the proposal being brought tomorrow as well as those who agree with it. “I think it is an attitude difference.”

Tomorrow we have to decide whether we change our attitude to go forward in the path of good governance or whether we continue to remain stuck in the same old politics which was rejected by the public, he said.

“We who have come this far will not give up the fight.” 

Happiest day of my life: President on day he quit govt

Happiest day of my life: President on day he quit govt
January 8, 2016  05:43 pm



President Maithripala Sirisena says that the day he quit the previous government and gave up his ministerial portfolio to contest the presidential election as the common opposition candidate, was the happiest day of his life.

The President made these remarks at the national ceremony to mark the one year completion of the democratic governance, held today (Jan. 08) at the BMICH.

“I accepted the most dangerous challenge and risk on November 21, 2014 when I left the then government after working for 13 continuous years as the General Secretary of the party, 26 years in parliament and 48 years in the SLFP.”

“If someone asks me on what day was I the happiest, I will say that the happiest day of my life was the day I gave up all my positions and left the government,” he said.

“The happiness of giving up power and being free of responsibilities.”

President Sirisena says after a completion of a year as the servant of the people, the agenda for the next five years will be the building of the motherland to a great nation in the world.

“Some people ask me what will be my place after the completion of my tenure as President when I agreed to abolish the powers of the Executive Presidency. My answer to them as well as for those who are not asking the same question from me, is I don’t think about my place in five more years, but think about the place of this country over the period of five years”, he said.

“The people brought us to power, expecting the social democratization of our country. Also , they expect a good economic management in good governance by ending the corruption, fraud and irregularity in this country”, the president said.

In the task of building the modern Sri Lankan state it is essential to bring about the national reconciliation and the unity among the communities in this country by leaving off the mistrust and suspicion among them, he said.

When we talk about constitutional changes some sections of the society says we are attempting to divide this country, he added.

Some say we are trying to destroy the place given to Buddhism in this country and some say we are focusing to endanger the national security of the country by weakening our security forces on foreign advices the President said that adding perhaps our achievements may not be felt or seen or understand, but those are the essential ingredients of transformation towards the righteous society.

President Maithripala Sirisena granted a presidential pardon to a former LTTE cadre, convicted on charges of attempting to assassinate him in 2006 at the event.

The convict was sentenced to 10 years rigorous imprisonment by the Polonnaruwa High Court on July 3, 2015 and it was upheld by the Supreme Court.

The launch of the book titled “One Nation Great Power” took place parallel to this event.

The keynote address of this ceremony delivered by former Governor and Ambassador Gopalkrishna Gandhi, who is the grandson of Mahathma Gandhi.

Prime Minister Ranil Wickremesinghe, the UN Resident Coordinator and UNDP Resident Representative  Subinay Nandy also addressed the event.

Former President Chandrika Bandaranaike Kumaratunga, Speaker Karu Jayasuriya, Opposition Leader  R. Sambandan, Field Marshal Sarath Fonseka, Ministers, MPs, politicians, artiste and many others participated in the event.

'இந்தியாவும் அமெரிக்காவும் தான் ஆட்சி மாற்றத்துக்கு காரணம்' : பசில்

'இந்தியாவும் அமெரிக்காவும் தான் ஆட்சி மாற்றத்துக்கு காரணம்' : பசில்

இலங்கையில முன்னாள் ஜனாதிபதி மகிந்த ராஜபக்ஷவின் ஆட்சிக்கு எதிராக புதிய ஆட்சியைக் கொண்டுவருவதில் இந்தியா, அமெரிக்கா போன்ற நாடுகள் பின்னணியில் இருந்து செயற்பட்டதாக மகிந்த

ராஜபக்ஷவின் சகோதரர்களில் ஒருவரும் முன்னாள் அமைச்சருமான பசில் ராஜபக்ஷ தெரிவித்துள்ளார்.

புதிய ஆட்சி ஏற்பட்டு ஓராண்டு பூர்த்தியாகின்ற நிலையில் பிபிசிக்கு அளித்துள்ள பேட்டியிலேயே பசில் ராஜபக்ஷ இந்தக் கருத்தை வெளிப்படுத்தியுள்ளார்.

ஓராண்டுக்கு முன்னர் புதிய ஆட்சி மாற்றத்திற்கு வழிவகுத்த ஜனாதிபதி தேர்தலின் தோல்விக்குப் பின்னர் அமெரிக்கா புறப்பட்டுச் சென்றிருந்தவர், பின்னர் இலங்கை வந்திருந்தபோது, அவர் மீது நிதி மோசடிக் குற்றச்சாட்டில் விசாரணைகள் பாய்ந்தன.

கடந்த ஏப்ரலில் கைதுசெய்யப்பட்ட சிறையில் அடைக்கப்பட்ட பசில் ராஜபக்ஷ, பின்னர் மருத்துவமனையில் சேர்க்கப்பட்டு, பிணையில் விடுவிக்கப்பட்டார்.

பொருளாதார அபிவிருத்தி அமைச்சராக இருந்த காலத்தில் திவிநெகும என்ற வறுமை ஒழிப்புத் திட்டத்தில் நடந்துள்ளதாகக் கூறப்படும் பெரும் முறைகேடுகள் தொடர்பில் அவர் மீது விசாரணைகள் நடக்கின்றன.
மகிந்த ராஜபக்ஷவின் ஆட்சியை கவிழ்க்க இந்தியா, அமெரிக்கா போன்ற பலம்கொண்ட நாடுகள் முக்கிய பங்களிப்பு செய்துள்ளதாக பசில் ராஜபக்ஷ குற்றம்சாட்டினார்.

'குறிப்பாக இந்தியா,அமெரிக்கா, ஐரோப்பிய ஒன்றிய நாடுகள் பல என்று எமக்கு எதிராக அணிதிரண்டிருந்தன. சர்வதேச மட்டத்தில் அந்த நாடுகள் கொடுத்த அழுத்தங்களுக்கு அப்பால் உள்நாட்டிலும் அழுத்தம் கொடுத்தன' என்றார் பசில் ராஜபக்ஷ.

'அந்த நாடுகள் பகிரங்கமாக இதனைச் சொல்லியிருக்கின்றன. அமெரிக்கா தங்களின் வருடார்ந்த அறிக்கையில் 2015-இல் தமக்கு கிடைத்த வெற்றி என்று இலங்கையின் ஆட்சிமாற்றத்தை வர்ணித்துள்ளது.

அதைவிட வேறு சாட்சி என்ன வேண்டும்' என்று கேள்வி எழுப்பினார்.
முன்னாள் ஜனாதிபதி மகிந்த ராஜபக்ஷவின் ஆட்சிக்காலத்தில் மிகவும் செல்வாக்கு மிக்கவர்களாக இருந்த அவரது மூன்று சகோதரர்களில் ஒருவர் தான் பசில் ராஜபக்ஷ என்பது குறிப்பிடத்தக்கது.