Sri Lanka doubles defence spending

[TamilNet, Thursday, 05 October 2006, 10:46 GMT]
Sri Lanka's hardline government plans to double defence spending next year, Reuters reported Thursday. Defence spending will rise 100 percent next year to 139.6 billion rupees from 69.5 billion budgeted for 2006, the appropriation bill seen by Reuters ahead of its presentation to parliament showed.

Overall spending goes up 40% to 804.6 billion rupees ($7.7 billion) in 2007 from that budgeted for this year.

Analysts said the increase in spending was higher than anticipated, expecting the budget deficit to widen due to increased defence expenditure, and wondering where the government will find the money.

"It looks as though they might be planning to upgrade their defence hardware, which means they will have to raise foreign money," Dushyanth Wijayasinghe, head of research at Asia Securities in Colombo told Reuters.

"They could do that partly from dollar bond issues and partly from long-term credit lines from (arms) suppliers," he added. "They need to get public sector spending under control ... and improve tax collection. There's no other way."

Meanwhile, many investors have either cancelled or held back investments in Sri Lanka’s $23 billion economy amid serious clashes between the armed forces and the Liberation Tigers, especially since late July when the military launched a major onslaught against the LTTE.

"The peace process will be key," Wijayasinghe said. "If they can take it forward, that will relieve a lot of pressure on the inflationary front and enable the corporate sector to take a longer view."


Latest 15 Reports
04.02.24 15:40   Photo
சியோனிசம் காணும் தோல்வி ஈழத்தமிழருக்குப் பலன் தரவல்ல படிமை மாற்றத்தின் அறிகுறி
24.04.22 05:44  
தீவின் நெருக்கடிச் சூழலில் ஈழத்தமிழர் தேசம் கடைப்பிடிக்கவேண்டிய நிலைப்பாடுகள்
09.04.22 14:44   Photo
குறிதவறும் ஈழத்தமிழர் தலைமைகளுக்கு வரலாறு தருகின்ற எச்சரிக்கை
21.01.22 07:24   Photo
ஈழத்தமிழர் தேசத்தின் தலைமைத்துவம் தேர்தல் அரசியற் கட்சிகளுக்கு அப்பாலானது
02.11.21 15:32   Photo
13 ஆம் சட்டத்திருத்தத்தால் கட்டமைக்கப்பட்ட இன அழிப்பை எதிர்கொள்ள முடியுமா?
15.09.21 08:19  
English version not available
17.05.21 19:23   Photo
Ananthi blames war criminal Silva for blocking collective memorial at Mu'l'livaaykkaal
09.04.21 14:46  
English version not available
23.03.21 12:41   Photo
No focus on Tamil genocide, geopolitics gets played out in Geneva in favour of QUAD formation
21.03.21 13:34   Photo
Navi Pillay explains ‘human rights’ limitations in Geneva on Tamil genocide
15.03.21 20:36   Photo
Deceived Tamil activists in UK falsely claimed ‘substantial changes’ to Zero draft
09.03.21 21:34   Photo
UK repeatedly wronged Tamils says hunger-striker, demands genocide justice
26.02.21 11:53   Photo
Tamils witness false dilemma in Geneva as geopolitical formations pit against each other
19.02.21 14:02   Photo
UK not prepared to push for ICC option in new UNHRC Resolution
07.02.21 23:16   Photo
Unprecedented P2P uprising paves the way for rights-oriented politics of Tamils and Muslims
Find this article at: