Wednesday Nov 13, 2024
Wednesday Nov 13, 2024
Wednesday, 6 September 2023 04:19 - - {{hitsCtrl.values.hits}}
Cabinet Co-Spokesman and Minister Bandula Gunawardena
By Charumini de Silva
The Government said yesterday it has decided to allocate Budget funds for the year 2024 in a strategic step aimed at leading the country towards its ambitious 2048 development goals and easing the existing economic crisis.
“The focus will be on prioritising projects capable of contributing to both long-term development objectives and immediate economic stability till foreign funds can be fully accessed,” Cabinet Co-Spokesman and Minister Bandula Gunawardena said at the post-Cabinet meeting media briefing yesterday.
He said this decision follows careful deliberation and consideration of a comprehensive report presented by President Ranil Wickremesinghe, who also serves as the Finance, Economic Stabilisation and National Policies Minster.
“The report provided insights into the progress achieved by a total of 202 large-scale development projects administered by various line ministries. The review covered project performance up to the end of the second quarter of 2023. One of the significant findings from the report was that the progress of many projects fell below the anticipated levels by the end of the second quarter of 2023,” he added.
Gunawardena said the decline was attributed to several factors, primarily the challenges in utilising foreign funds designated for these projects and the constrained release of local funds. “These financial constraints were worsened by the ongoing debt restructuring process, which is currently underway,” he pointed out.
He stressed that many projects started in 2021, such as highways, 100,000 km being added to the national road network and building new bridges, have been put on hold since Sri Lanka declared bankruptcy.
“The country could only resume the projects after the external debt restructuring process is completed.
The Government aims to strike a balance between the necessity to stimulate economic growth and ensuring financial stability by carefully allocating resources. The forthcoming 2024 Budget allocation will serve as a crucial instrument in addressing immediate economic concerns and commitment to responsible fiscal management,” he added.
Noting that there are ongoing discussions with the external creditors, Gunawardena said the Government is hopeful of a better economic footing towards the last quarter of the year.
The proposal to this effect submitted by President Wickremesinghe was approved by the Cabinet of Ministers at its meeting on Monday.
