Sri Lanka government revenue fell to Rs 663.4 bn during the first half of this year from Rs. 888.0 bn recorded in the corresponding period of 2019, underscoring the damage done to the economy by the Covid-19 pandemic and the lockdown that followed, Central Bank data showed.
During the same period, total expenditure and net lending declined to Rs. 1,401.2 bn from Rs. 1,410.3 bn recorded in the corresponding period of 2019.
The revenue shortfall widened the overall budget deficit to Rs. 735.7 bn during the first half of 2020 from Rs. 521.7 bn recorded in the corresponding period of the previous year.
In nominal terms, domestic financing increased to Rs. 882.5 bn in the first half of 2020 compared to Rs. 463.4 bn in the corresponding period of 2019, while foreign financing recorded a net repayment of Rs. 146.8 bn during the first half of 2020 compared to a net borrowing of Rs. 58.3 bn recorded in the corresponding period of 2019.
Outstanding central government debt increased to Rs. 14,052.2 bn by end of June 2020 from Rs. 13,031.5 bn as at end 2019.
Total outstanding domestic debt increased by 13.6 per cent to Rs. 7,530.8 bn, and the rupee value of total outstanding foreign debt increased by 1.9 per cent to Rs. 6,521.4 bn by end June 2020.
During the year up to 28th August 2020 the Sri Lankan rupee depreciated against the US dollar (2.5 per cent).
Reserve money increased to Rs 878.8 billion last month from Rs 869.0 billion during the previous month of June, Central Bank weekly economic indicator report revealed.
However the reserve money decreased compared to the previous week mainly due to the decrease in currency in circulation, report disclosed.
Broad money (M2b) expanded by 15.7 per cent, on a year-on-year basis, in July 2020 while net Credit to the Government from the banking system increased by Rs.172.0 bn in July 2020.
Outstanding credit to public corporations increased by Rs. 31.3 bn in July 2020. Outstanding credit extended to the private sector declined by Rs. 3.6 bn in July 2020.
The total outstanding market liquidity was a surplus of Rs. 193.041 bn by end of this week, compared to a surplus of Rs. 192.972 bn by the end of last week.
During the year up to 28th August 2020 the Sri Lankan rupee depreciated against the US dollar (2.5 per cent).
The total number of international tourist arrivals to Sri Lanka from January to July 2020 was 507,311. No tourist arrivals have been recorded for the month of July 2020 due to the termination of all passenger flights and ship arrivals into Sri Lanka from 18th March 2020.
Total arrivals recorded from January to July 2019 were 1,124,150. In comparison to January to July last year (2019), a decline of 49.7 % has been recorded for the same period in 2020.
Tourism earnings declined to US$ 956.2 during the first half of last year from $2,118.8 million in the same period last year.
Workers’ remittances increased to $702.1 million last month compared to $ 625.7 million July 2019.
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