- Semasinghe says Govt repaid more than it borrowed through T-bonds, bills in H1
The Government manages the budget deficit independently with the implementation of a new Central Bank Act, State Minister of Finance Shehan Semasinghe says.
Posting on ‘X’ (formerly Twitter), Semasinghe stated that in the first six months of 2024, the Government repaid Rs. 129 billion more than it borrowed through treasury bonds and bills.
“During this period, the Government borrowed a total of Rs. 4,852 billion through these instruments but repaid Rs. 4,981 billion by rolling over the same instruments. Therefore, it’s important to highlight the net borrowing rather than the gross borrowing,” he added.
Furthermore, the Finance State Minister expressed that before emerging from the economic crisis, the Government relied on central bank financing, which led to an inflation rate as high as 70% and that however, with the implementation of a new central bank act, the Government now manages the budget deficit independently.