Cabinet green light to increase Sri Lanka’s credit limit by another Rs. 400 billion
COLOMBO (New 1st); The Sri Lankan Minister’s Office has given the green light to increase Sri Lanka’s credit limit from another Rs. 400 billion to Rs. 3,397 billion.
The Cabinet also gave its agreement to take the necessary measures to amend Appropriation Law No. 7 of 2020.
The Ministry of Information said Appropriation Law No.7 of 2020 approved a credit limit of Rs. 2,997 billion for the year 2021.
However, the approved credit limit must be raised for the year 2021 due to the decline in government revenue in the context of the situation resulting from the Covid -19 pandemic and the increase in spending in several other sectors, notably health expenses as well as social security protection for those who have lost income and have to make additional provisions for salaries and other expenses due to the loss of income of institutions that receive salaries out of their income.
As a result, the Cabinet of Ministers approved the proposal submitted by the Minister of Finance to increase the credit limit from Rs. 2,997 billion approved by Appropriation Law No.7 of 2020 by another Rs. 400 billion to Rs. 3397 billion and take the necessary measures to modify the said finance law.