Stalled development projects will recommence next month, following the finalisation of agreements related to debt restructuring and ongoing discussions with foreign creditors of Sri Lanka, Transport, Highways, and Mass Media Minister Dr. Bandula Gunawardena said.
During a media briefing at the Presidential Media Centre (PMC) on the theme ‘Collective path to a stable country,’ Minister Dr. Gunawardena said that Rs. 150 million has been allocated to the District Development Committees (DDCs) under the chairmen for road development. Rs. 50 million has also been earmarked through the Ministry of Rural Affairs to develop small roads.
Dr. Gunawardena detailed the financial landscape, emphasising the need for careful consideration of income and expenditure in the challenging year ahead. In 2022, the Government’s total tax revenue amounted to Rs. 1,751 billion, with 72 percent (Rs. 1,265 billion) allocated to Government employees’ salaries, pensions and Rs. 506 billion spent on Samurdhi allowance and support for the needy.
The Minister highlighted the challenge of balancing the expenses, including interest payments on loans (Rs. 1,065 billion) and Capital Expenditure (Rs. 715 billion).
He said the earnings of various Government Departments, such as the Inland Revenue Department (IRD) – Rs. 1,550 billion, Customs Department – Rs. 922 billion, Excise Department (ED) – Rs. 169 billion and Motor Vehicle Commissioner’s Department (RMV) – Rs. 20 billion. Despite an increase in income from the public and various strategies in 2023 (Rs. 3,201 billion), expenses outpaced revenue, resulting in a deficit.
Last year, the Government spent Rs. 2,160 billion on subsidies, Rs. 2,263 billion on interest payments and Rs. 4,394 billion to run the Government, while its income for the year was Rs. 3,201 billion. The Government borrowed extensively, with Rs. 10,091 billion borrowed domestically through Treasury Bills and Treasury Bonds.
Looking ahead, development schemes are slated to begin next month after the restructuring of debt and finalising agreements with creditors. A US$ 60 million loan from the World Bank and financial assistance from the Samurdhi Fund will be used for road repairs. The restructuring of foreign debt has reached its final stages, paving the way for the resumption of paused development projects, Dr. Gunawardena said.
