COLOMBO (Reuters) – Sri Lanka’s new Prime Minister Ranil Wickremesinghe mentioned on Tuesday he will current an interim budget inside six weeks, slashing down on infrastructure initiatives and re-routing funds right into a two-year reduction programme for the crisis-hit island nation.
“With the interim budget, it’s nearly reducing down expenditure, reducing to the bone the place potential and transferring it to welfare,” Wickremesinghe, who took workplace two weeks in the past, mentioned in an interview.
Inflation in the nation of twenty-two million individuals, which is being battered by its worst financial disaster since independence, may rise above and annual 40% as the federal government rolls again gasoline subsidies and prints more cash to maintain the economic system afloat, he mentioned.
“We don’t have any rupee income, and now now we have to print one other (one) trillion rupees,” he mentioned.
Wickremesinghe added the nation would appoint a new finance minister on Wednesday, who will lead negotiations with the International Monetary Fund for a mortgage package deal.
(Reporting by Uditha Jayasinghe and Devjyot Ghoshal in COLOMBO; Editing by Raju Gopalakrishnan)