Press briefing of Cabinet Decision taken on 2016-12-13

Budget Financing for 2016 and 2017

- When mobilizing the funds required for the Budget Financing, in addition to accessing the domestic market through Government Securities, the foreign currency financing resources, raising of Foreign Currency Credit facilities through the Foreign Currency Banking Units of the State Banks, provision of the foreign exchange term financing facilities and the issue of International Sovereign Bonds also could be utilized. According to the alternative diversified borrowing options, the required funds could be mobilized at a reduced cost and an opportunity also will be created for various investors who show interest, to gain access to the Sri Lanka Loan Market. At the same time, a greater competition will also be created among those investors. Accordingly, the joint proposal made by Hon. Ranil Wirckremasinghe, the Prime Minister, in his capacity as the Minister of National Policies and Economic Affairs, and Hon. Ravi Karunanayake, the Minister of Finance, to appoint a Steering Committee and a Technical Evaluation Committee comprising of the officials of the General Treasury, the Ministry of National Policies and Economic Affairs and the Central Bank of Sri Lanka, to pursue action to move forward in the provision of foreign exchange term financing facility, was approved by the Cabinet.