Rs. 60 b to continue stimulus package in next Budget: SLPP

• Pledges to continue COVID-19 support to business community
• Says will discuss with all parties ahead of formulating Budget

By Nuwan Senarathna

The Sri Lanka Podujana Peramuna (SLPP) yesterday said the stimulus package currently being rolled out by the Government would be included in the next Budget along with an allocation of Rs. 60 billion to revive COVID-19 impacted businesses.

Speaking to reporters at the SLPP Head Office, Chairman Prof. G.L. Peiris said they had already commenced discussions on proposals to be included in the Budget and how to set up policies to address challenges that had arisen due to COVID-19.  Currently the Central Bank has launched a refinancing and credit guarantee facility, which will meet the Rs. 150 billion ceiling set by the Cabinet of Ministers. Prof. Peiris also said the Government would continue to give 4% interest on a selection of loans, much like the working capital loans already in place.  

“We are already discussing what should be included in the Budget and once Parliament is convened in August, we will discuss with all parties and gather their suggestions. We are expecting to present a Budget that will continue to give concessions to the business community, which eventually filter to the public and improve money circulation. Rs. 60 billion will be allocated for this purpose,” he said.

According to Prof. Peiris, the Government will present a Vote on Account (VoA) soon after Parliament is convened, but he did not give a specific timeline for the VoA. He noted that they were expecting to present a Budget at the earliest convenience, however SLPP National Organiser Basil Rajapaksa last week stated that the Government was likely to bring a VoA to cover public finances for the rest of 2020 and present a Budget for 2021.

“We cannot fully manage the economy with the VoA. The Government cannot allocate much funds for capital expenditure when the VoA in effect. Therefore we have to bring a new Budget soon to address prevailing economic challenges and restart development,” Prof. Peiris added.

He noted that the Budget would also embody goals set out in President Gotabaya Rajapaksa’s policy statement. Prof. Peiris also said that a two-third majority would be essential for Constitutional reforms, as well as policies to address economic challenges, and expressed confidence in getting sufficient seats in Parliament.

“We need to repeal the 19th Amendment to address its shortcomings. That will be one of the major objectives. Several issues arose due to the 19A and that has shown how certain independent commission members behave, therefore these shortcomings need to be addressed,” he said.