Treasury goes online with lockdown

COLOMBO (News1st): The Treasury Department has requested state institutions to settle loan installments and interest payments, via Direct Bank Transfers, with immediate effect. Accordingly all liable stakeholders are requested to settle their dues to the '' Deputy Secretary to Treasury's Account '' also known as ''DTS's Account'', at the Bank of Ceylon Thaprobane Branch or the People's Bank Union Place Branch. An advance copy of the Bank Transfer or Bank Deposit Slip and all relevant details should be submitted via email to [email protected]. The transition to online payment platforms comes amidst the prevailing lockdown and social distancing measures in place, due to the Covid19 outbreak in Sri Lanka. As of this morning, Sri Lanka reported 373 Covid19 positive cases, out of which 259 are active and currently under medical observation. Amidst the prevailing health crisis in the country and the global economic crunch, Sri Lanka's government is faced with another challenge of not having an Appropriation Act approved for 2020. According to the Finance Ministry's pre election budgetary report 2020, realized government revenues in 2019 stood at Rs. 1,899 billion, almost 20 per cent ( Rs. 456 billion) less than the estimated revenue of Rs. 2,357 billion. This was driven mainly by a 20-25 percent short in revenues from taxes on goods and services i.e Value Added Tax (VAT) and taxes on external trade driven by the decline in the imports of intermediate goods and almost a 50 percent decline in the import of motor vehicles. Economists predict government revenue to further dip this year, owing to Covid19 implications and tax revisions announced last year. State expenditure is expected to increase further this year, due to multiple relief measures given by the government to boost the economy.