‘Sri Lanka becoming revenue surplus country’

2023 is "very crucial" for the island nation as the International Monetary Fund is scheduled to hold its review meeting in September, Minister of Finance Shehan Semasinghe said

Chennai: Sri Lanka has outperformed the IMF targets with the country becoming revenue surplus and the country is offering many opportunities for Indian investors, the island nation’s Minister of Finance Shehan Semasinghe said on Thursday.

The Minister, in Prime Minister Dinesh Gunawardena’s cabinet, said the Sri Lankan government has commenced negotiations to join the Regional Comprehensive Economic Partnership (RCEP).

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“Compared to the IMF target for the quarter, we have outperformed the set targets with the country’s revenue now in surplus in the first quarter of 2023,” he said at an event organised by CII.

2023 is “very crucial” for the island nation as the International Monetary Fund is scheduled to hold its review meeting in September, he said.

“We are introducing the Public Finance Management Act by December 2023 and other legislation bringing in robust fiscal rules and disciplines on fiscal transparency,” he said.

“In one of the many firsts, our government has commenced negotiations with India, China and Thailand and we aim to join the Regional Comprehensive Economic Partnership (RCEP),” he said.

On the economic crisis faced by the country last year, he said: “Sri Lanka is the perfect example to showcase as the poster child for recovery from a sovereign debt crisis. We have many opportunities to offer for our Indian investors.” New economic zones, FDI inflows, increased competition and a shift to a private sector-driven economy is the way forward for a sustainable equitable growth, he said at the meeting held on the topic ‘Invest Sri Lanka-Investor Forum India’.

Confederation of Indian Industry (CII), Tamil Nadu Vice Chairman Srivats Ram said, “India and Sri Lanka have shared history, culture and people-to-people connect over several centuries. We have made progress in trade between the two countries.” “I am confident that India’s vast consumer base, technological advancements and entrepreneurial spirit can serve as a catalyst for Sri Lanka’s economic development keeping in mind its strategic location and natural resources,” said Ram, also the Managing Director of city-based Wheels India Ltd.