Wednesday, 20 November 2013 - 10:29
Sri Lanka has to guard against external risks - IMF
Sri Lanka has expressed a commitment to keep the budget deficit down next year, but the country has to guard against external risks and boost its business climate, a top International Monetary Fund official said.
IMF deputy managing director Naoyuki Shinohara, said Sri Lanka had managed inflation, economic growth and the exchange rate was stable and authorities showed a strong commitment to keep the budget deficit down.
Critics say Sri Lanka has a large budget deficit because the state spends more money than the people can afford to pay as taxes, despite visibly high level of taxes especially on food, partly due to protectionism.