Colombo. Sri Lankan President Ranil Wickremesinghe has directed all ministries to cut five per cent of the estimated expenditure allocated to them in this year’s budget. Sri Lanka’s financial crisis has deepened. It is believed that the economic crisis of the cash-strapped country is much deeper than previously estimated.
Sri Lanka is facing its worst economic crisis since independence from Great Britain in 1948. Sri Lanka’s foreign exchange reserves have come down significantly. Sri Lanka had announced default on international debt in April last year due to foreign exchange crisis. Addressing reporters on Tuesday, Cabinet spokesman and Transport Minister Bandula Gunawardene said that President Wickremesinghe has informed the Cabinet that the state coffers have shrunk significantly.
Explaining things, Gunawardena said that in the first few months of 2023, a lot could have been earned through taxes, but due to the economic crisis that has been going on since last year, there has been a huge reduction in it. He said, “The economic crisis is more serious than we had estimated. The President on Monday directed the cabinet to reduce by five per cent the proposals submitted by various ministries in the 2023 budget.
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