ENB Budget series:
IMF இற்கு அடிமைச் சேவகம்.
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The budget underscores the challenge that Sri Lanka’s fiscal authorities will continue to face because of its still weak debt affordability, still narrow revenue base, and underlying social constraints.”__________________________
Budget 2025: Commitment to IMF Programme, Challenges Ahead, says Moody’s Ratings
Author LBO Posted on February 18, 2025 | Budget, Lead Story
Sri Lanka’s 2025 budget signals a strong commitment to adhering to the International Monetary Fund (IMF) programme, with a focus on achieving a primary surplus and introducing new revenue sources to offset shortfalls resulting from tax policy changes.
Christian Fang, Vice President - Senior Analyst at Moody's Ratings, stated, “Sri Lanka’s draft 2025 budget demonstrates the government’s commitment to its IMF programme, in particular with the primary surplus target and introduction of additional sources of revenue to make up for shortfalls due to tax policy adjustments.”
Despite this commitment, the budgeted expenditure exceeds previous forecasts, primarily due to higher interest payments. This is likely to lead to a larger fiscal deficit for 2025 and a slower pace of fiscal consolidation than previously estimated.
Fang elaborated, “However, the budgeted expenditure is higher than we have previously forecast – albeit due to higher interest payments – and will likely result in a wider fiscal deficit for 2025 and slower path of fiscal consolidation than our previous estimates. The budget underscores the challenge that Sri Lanka’s fiscal authorities will continue to face because of its still weak debt affordability, still narrow revenue base, and underlying social constraints.”
The budget highlights the ongoing challenges for Sri Lanka's fiscal authorities, including weak debt affordability, a narrow revenue base, and social constraints, which continue to present significant hurdles. 🔺
