Monday, July 27, 2009

Sri Lanka to Focus 2010 Budget on Rebuilding After Civil War

July 27 (Bloomberg) -- Sri Lanka plans to focus spending in the government’s 2010 budget on rebuilding areas liberated from Tamil Tiger rebels after the end of 26 years of civil war.

“Improving living conditions and restoration of economic activities through accelerated resettlement, rehabilitation and reconstruction programs” will be given priority, the Ministry of Finance said in its budget circular to ministries and other state institutions.

The ministry called for better utilization of “foreign resources” and containment of recurrent expenditure to help narrow the budget deficit to 6.6 percent of gross domestic product in 2010 from an estimated 7 percent this year.

President Mahinda Rajapaksa will in November present the government’s 2010 budget after ending the Liberation Tigers of Tamil Eelams’ quest for a separate homeland with record defense spending. The International Monetary Fund and Asian Development Bank last week announced increased lending to Sri Lanka to help revive the war-ravaged east and north of the island.
>> Full Story