Sri Lanka to use Budget to meet some IMF pledges as polls near

Sri Lanka's President Ranil Wickremesinghe addressing the 78th Session of the UN General Assembly in New York City, United States, on Sept 21, 2023. — Reuters

COLOMBO (Bloomberg): Sri Lanka is likely to raise taxes and curb spending in its annual budget to meet the International Monetary Fund’s conditions and maintain a US$3bil bailout, but elections next year might see the government delay some reforms.

President Ranil Wickremesinghe is expected to announce a narrower budget deficit from the last fiscal year’s target of 7.9% of gross domestic product and lay out a road map to boost investments to aid economic recovery. Wickremesinghe, who is also the finance minister, needs to win over voters ahead of presidential elections due in 2024.