Amendment submitted to the Committee on Public Finance to increase the borrowing limit – Eurasia Review
An amendment to Appropriation Law No. 07 of 2020 to increase the borrowing limit was recently approved by the Sri Lanka Public Finance Committee chaired by Member of Parliament Anura Priyadarshana Yapa.
As a result, the borrowing limit which was Rs. 2,997 billion will be increased to Rs. 3,397 billion, it was revealed during the public finance committee held online.
Minister of Finance and Treasury Secretary SR Attygalle stressed that an amendment to the finance law was needed to increase the borrowing limit due to the country’s economic slowdown caused by the Covid 19 situation.
He further pointed out that this was due to the inability to meet the expected income for the year 2021, the increase in additional expenses and the devaluation of the rupee in the payment of foreign currency loan services.
Mr Attygalle also pointed out that the increase in social spending during the Covid 19 pandemic has resulted in an increase in additional spending. He also said that a sum of Rs. 200 billion had recently been approved by Parliament for additional spending.
In addition to this amendment, in accordance with the Cabinet decision taken on 09/27/2021, the notification to the Official Gazette submitted by the Minister of Finance to revoke the licensing system for white sugar which entered into force on October 29, 2020 under of the Import and Export (Control) Law No. 01 of 1969 was approved by the Public Finance Committee.
Dr Harsha de Silva said he has repeatedly stressed the need for a forensic report in this regard to clarify the crisis situation in the country regarding sugar. The president said the public finance committee would be able to engage in a long discussion on the issue soon after it was tabled by the public accounts committee.