Parliament approved credit limit increase of Rs. 1 trillion


COLOMBO (News 1st); The resolution to increase the credit limit from Rs. 3 trillion (3 trillion) previously approved by a resolution of Parliament under the Local Treasury Bills Ordinance, by another Rs. 1 trillion (1 trillion) has passed in Parliament without debate.

Accordingly, all necessary authorizations under Section 2(1) of the Local Treasury Bills Ordinance shall be granted to the Minister of Finance for the purpose of borrowing an amount not exceeding Rs. 1 trillion (1 trillion) through the issuance of treasury bills by the Government of Sri Lanka.

In accordance with the Local Treasury Bonds Ordinance No. 8 of 1923 and its subsequent amendments, the Government of Sri Lanka issues treasury bonds and obtains loans not to exceed the amount approved by a resolution of Parliament.

Thus, by 2021, the upper limit approved by Parliament for the issuance of treasury bills is 3 trillion rupees (one trillion) and the total value of treasury bills due by the end of April 2022 is about 2,860 billion rupees.

The significant decline in government revenue collection due to the COVID 19 outbreak and other causes, expenditures approved under Finance Law No. 30 of 2021 in addition to debt service payments, in particular recurrent expenses and social expenses to be borne, have led to an increase in the credit limit.

In addition, the Ministry of Finance had to resort to borrowing from local sources as it lost access to international markets to raise funds from foreign sources due to the downgrading of Sri Lanka’s credit rating.

In addition, Parliament today approved Import and Export Control Regulation No. 6 of 2022 published in Official Gazette Notification No. 2274/42 of 09.04.2022 promulgated under Law No. 1 Imports and Exports (Control) 1969.

The regulations aim to minimize the outflow of currency by discouraging the import of non-essential and non-essential goods identified by the Ministry of Finance with the intention of donating.

Accordingly, Official Gazette Notification No. 2274/42 dated 09.04.2022 has been issued to implement the proposal to impose import control licensing requirements for the import of 369 non-essential items.

Source: Sri Lankan Parliament


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