Sri Lanka targets to cut fiscal deficit to 4% of GDP by 2025

Sri Lanka targets 6 percent economic growth while containing budget deficit at 4 percent by 2025, the Prime Minister and  Minister of Finance Mahinda Rajapaksa announced delivering the 2021 Budget speech in the Parliament.

He also noted that the government would cut its debt-to-GDP ratio to 70% from the estimated 90% this year.

The government targets a budget deficit of 8.9 percent next year.

The goverment expects to maintain inflation at around 5%.

“We have entered an era in which Sri Lanka’s geopolitical importance is highly valued and we need to utilize it while sustaining sovereignty. We need a strategic vision for that” Prime Minsiter said.