• The revenue received from the Inland Revenue Department, Customs and  Excise Department had gone down drastically because of the lockdown
• Sri Lanka will not agree to politically based conditions imposed by any  donors when it comes to external borrowings
• This is not totally due to the pandemic as Sri Lanka’s state expenditure has exceeded the revenue

By Yohan Perera and Ajith Siriwardana  

The Sri Lankan Government has lost a total revenue of Rs 1,600 billion this year because of  the COVID- 19 pandemic, Minister Finance Basil Rajapaksa informed Parliament yesterday.   

Speaking during the debate on regulations imposed under the Financial Bill and Export Import Control Bill, the Minister said 70 percent of indirect tax revenue has been recorded since the current lock-down was imposed. “The revenue received from the Inland Revenue Department, Customs and Excise Department had gone down drastically because of the lock down,” Mr. Rajapaksa said.  

“Total revenue has dropped drastically compared to the expenditure. This is not totally due to the pandemic as Sri Lanka’s state expenditure has exceeded the revenue,” he said.   “ We have decided to use foreign assistance with utmost diligence and will only work with institutions such as the World Bank and Asian Development Bank and will only for concessionary loan schemes. Sri Lanka will not agree to politically based conditions imposed by any donors when it comes to external borrowings,” the Minister added.   “Government is  prepared to face the crisis situation and is prepared to work with the Opposition in dealing with is financial crisis,” he also said.