Government well within borrowing limits – Ravi Karunanayake
The Government was well within borrowing limits in 2016 and about 22% of the approved borrowings were not utilized, Finance Minister Ravi Karunanayake said yesterday.
Addressing the media, Karunanayake said the Government’s financial performances had improved during the last two years as the utilization of borrowings had improved while the borrowing limit had decreased.
According to the data, approved borrowing limit for 2015 was Rs 1,780 billion and it had declined to Rs 1,699 Billion in 2016 and it is expected to go down further to Rs 1,579 billion in 2017.
Data further indicates that in 2014, the Government’s utilization of borrowings was very high as the approved borrowings limit was Rs 1,478 and usage was Rs 1425, indicating that only 15%, of the borrowings approved, was not utilized. In 2015, only 1.75% of the approved borrowings were not utilized.
Although the borrowing limits as well as the performances regarding the utilization of borrowings had improved, the debt to GDP ratio had increased to 79.3%.
The Central Bank Annual Report 2016 noted that the Government debt-to-GDP ratio was reported as 79.3 per cent in 2016, it still remains very high when compared to other frontier markets and peer countries in the region. Low revenue has led the government to rely heavily on debt creating financing instruments, which contribute to the accumulation of the government debt stock. Higher debt stock augments debt service payments, further contracting the fiscal space available for other mandatory/ productive activities.
Moreover, the larger deficits resulting from heavy debt service expenditure eventually paves the way for the country to borrow more, thus creating conditions that expose it towards a ‘debt trap’ or the ‘vicious cycle of debt’.
(Source: Ceylon Today – By Umesh Moramudali)
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what was the final outcome of the debate on the central bank bond scam. obviously those who investigated into failed to do the obvious ….the money trail! this sort of money involved is not left lying under beds or private vaults like drug lords in suth america
Pablo Emilio Escobar Gaviria (December 1, 1949 – December 2, 1993) was a notorious Colombian drug lord who at the height of his career, supplied about 80% of the cocaine smuggled into the US. Known as “The King of Cocaine”, he was the wealthiest criminal in history, with an estimated known net worth of US$30 billion by the early 1990s, and approximately US$50 billi
so what Antony of perpetual treasuries connection could either lead there or to his boss rajaratnam for R had strong connections with LTTE that led a terrorist crusade against the sinhalese in SL quote below is from the NY times
A 2007 investigation into the American branch of the Tigers, formally known as the Liberation Tigers of Tamil Eelam, or L.T.T.E., turned up an “Individual B” who authorities say donated $2 million to the rebel group. People briefed on the matter, confirming a report in The Wall Street Journal, said that individual was Mr. Rajaratnam
Pablo Emilio Escobar Gaviria (December 1, 1949 – December 2, 1993) was a notorious Colombian drug lord who at the height of his career, supplied about 80% of the cocaine smuggled into the US. Known as “The King of Cocaine”, he was the wealthiest criminal in history, with an estimated known net worth of US$30 billion by the early 1990s, and approximately US$50 billi
In theory the only limit to burrowing is to the strength of the political alliances, The Sri Lankan ~oligarchs’ believe that our salvation lie with either romans or the west which is a result of the church and cricket and we cannot see beyond. For instance our legislation is not divided by ideology. It is between those who wear tie and coat and those who wear the all white national. A lot of people, even some of the parliamentarians object to tie coat cult which is nothing more than a reflection of identity crisis.
Next time Ravi appproach the lenders he ought to try a new strategy …like wearing a paly cart sarong and fez that was abandoned by the turk! and few sphire rings …That shoud iam sure would raise burriwing limit regardles of the lending!