AMN/ WEB DESK

Sri Lanka’s cabinet has approved the presentation of a supplementary estimate of 219 billion rupees to parliament, aimed at funding key expenditure items, including a 130 billion rupee interest subsidy for debts assumed by taxpayers. The allocation will remain within the approved expenditure and debt limits for 2024.

The largest component, amounting to 130 billion Sri Lankan rupees, is designated for the Department of Public Enterprises to cover interest subsidies on debts transferred from the Ceylon Petroleum Corporation to the government’s balance sheet. Additional funds will be used for grants and other financial obligations.

The Cabinet has also approved the presentation of an interim budget for the first four months of 2025 as there was no time to present Budget 2025 due to dissolution of the Parliament in September. This budget will provide funding for ongoing projects, public services, debt servicing, and loan restructuring. The interim budget is part of a broader plan to ensure the continuity of government operations while preparing for the full 2025 budget.

Meanwhile, the government plans to submit the 2025 Appropriation Bill to parliament on January 9, 2025, with the Budget Speech scheduled for February 17, 2025. The budget debate will then be held across February and March setting the stage for the country’s fiscal agenda in the coming year.