Sri Lanka’s cabinet said on Tuesday it would cut its recurring budget expenditure by 6% in 2023 as the country battles its worst financial crisis in seven decades and sought support from the International Monetary Fund (IMF).
Cabinet spokesman Bandula Gunawardhan told reporters that the cabinet has also approved a proposal to delay salaries of some public servants to manage public finances.
“Sri Lanka, under successive governments, has printed currency to bridge the gap between public revenue and expenditure, but because of the financial crisis and our efforts to get support from the IMF, there is a ban on printing currency, therefore reducing expenditure. Doing is the only option,” Gunawardena said.