Press briefing of Cabinet Decision taken on 2019-10-15

The Draft policy (Amendment) relating to the Fiscal Management (Responsibility) Act, No.3 of 2003

- The Government Fiscal Management (Responsibility) Act, No.3 of 2003 was passed, with a view to introducing Government Fiscal Targets as a guide to be followed to ensure a more responsible Government fiscal management. As stated specifically in the said Act, by reducing the gross Government debt up to a level of 85% by the year 2006 and up to a level of 60% by the year 2013 as a percentage of the Gross Domestic Product (GDP), it was expected to maintain the budget deficit to be in a level of 5% of the Gross Domestic Product. However, as a result of the various internal and global impacts the Sri Lanka economy had to face, the numerical targets could not be achieved and as such, the said targets for the year 2013 and 2016 were revised. On the prevailing Government fiscal situation, the budget deficit and the amount of gross Government debt has to be maintained at an adaptable level to the economy. Accordingly, the proposal made by the Minister of Finance, to revise the targets indicated in the initial Finance Act declaring the Government fiscal targets given, to be strictly adhered to, was approved by the Cabinet.