Economy was poised to take off before COVID-19: Treasury

Monday, 6 July 2020 01:42 - - {{hitsCtrl.values.hits}}

The General Treasury has claimed that the economy was set to take off only to be constrained by the COVID-19 pandemic, though in the aftermath there are signs of rebound.

“During the first quarter of 2020, although the lockdown occurred only around two weeks to the end of the quarter, improved private sector credit growth, and Government revenue collections at around Rs. 476.7 billion on the back of the stimulus package introduced by the Government in December 2019 indicate that the economy was poised for a take-off,” Treasury said in the Mid-Year Fiscal Position Report 2020.

It also said while the lockdown affected the country’s April 2020 exports such that they amounted to only around $ 295 million, it has improved to almost $ 695 million by May 2020.

This, the Treasury said, is “a significant improvement over the previous month, indicating that the economy has now repositioned itself to generate value into the system.”

It also said the fiscal and monetary stimulus measures have been implemented to support individuals and families in addition to the support provided for, in particular, micro, medium and small enterprises (MMSEs) affected by the COVID-19 pandemic.

The Treasury said the private sector credit increased by 7.6% to Rs. 5.95 trillion as at end April 2020 from a year earlier. It also said Gross Official Reserves (GOR) stood at $ 7.2 billion by the end of April 2020, which is equivalent to 4.5 months of imports.

Tougher times for General Treasury

Govt. struggles with fiscal performance

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.