July 21, Colombo (LNW): The government is effectively managing the budget deficit independently, following the implementation of a new Central Bank Act, Finance State Minister Shehan Semasinghe said.
In a post on ‘X’, Semasinghe revealed that during the first six months of 2024, the government repaid Rs 129 billion more than it borrowed through treasury bonds and bills.
Specifically, the government borrowed Rs 4,852 billion through these instruments but repaid Rs 4,981 billion by rolling them over.
He emphasised the importance of highlighting net borrowing rather than gross borrowing.
Semasinghe also pointed out that prior to overcoming the economic crisis, the government heavily depended on central bank financing, resulting in an inflation rate that soared to 70 per cent.
However, with the new Central Bank Act in place, the government has now taken full control of managing the budget deficit.
