Speaking at the event, Treasury Secretary Mahinda Siriwardene said Sri Lanka has to rationalize state expenditure, reduce central bank financing and diversify sources of financing.
Noting that Sri Lanka is embroiled in a deep crisis, Secretary Siriwardena said increase of the revenue and also the reduction of expenditure has to go hand in hand. Speaking on unsuitable fiscal policies adopted by successive governments over the last 10-15 years, Siriwardene noted, “We have been living beyond our means. We need to maintain discipline. It is important to implement fiscal policies that could be sustained.”
Speaking on reforms relating to State owned enterprises, Siriwardena stated that many SOEs have always been generating a significant amount of losses, putting a huge strain on banks and governments alike.
“We have asked these State institutions to act responsibly and streamline expenditure. We’re currently monitoring these institutions and have already seen some positive results.”
Siriwardena stated that a presidential commission will be established to monitor the implementation of budget proposals.
“There will be a close follow up and monitoring.” Siriwardena cautioned.