Cabinet green light to increase Sri Lanka's credit limit by another Rs. 400 Bn

COLOMBO (News 1st); The Sri Lankan Cabinet of Minister has given the green light to increase Sri Lanka's credit limit by another Rs. 400 Bn to Rs. 3,397 Billion.

The Cabinet has also given its consent to take necessary steps to amend the Appropriation Act No.7 of 2020.

The Department of Government Information said the Appropriation Act No. 7 of 2020 has approved a credit limit of Rs. 2,997 billion for the year 2021.

However, The Approved credit limit has to be raised for the year 2021 due to declining government revenue under the situation that has arisen due to the Covid -19 pandemic and increased expenditure in several other sectors including health care expenditure as well as social security protection for those who have lost income and having to make additional provisions for salaries and other expenses due to the loss of income of institutions which are paid salaries from their income.

Accordingly, the Cabinet of Ministers approved the proposal submitted by the Minister of Finance to increase the credit limit of Rs. 2997 billion approved by the Appropriation Act No. 7 of 2020 by another Rs. 400 billion to Rs. 3397 billion and to take necessary steps to amend the said Appropriation Act.