Govt. to cut capital expenditure by 15 percent

The Finance Ministry is reported to have instructed all ministries to curtail their capital expenditure announced in the budget by 15 per cent because of financial constraints faced by the government.

Informed sources said the government is cash-strapped and unable to meet its revenue targets for this year in the aftermath of the terrorist attack and facing difficulties to find money for additional expenditures triggered by the Easter Sunday attack.

A government source said extra funds were needed to grant concessions to the tourism sector badly hit by the attack while the government is yet to settle bills amounting to Rs.99 billion for the projects carried out last year. (Kelum Bandara)