Moody’s has say on SL’s 2025 Budget

Thursday, 20 February 2025 05:43 - - {{hitsCtrl.values.hits}}

Moody’s Ratings said that Sri Lanka’s draft 2025 Budget demonstrates the Government’s commitment to its International Monetary Fund (IMF) program, in particular with the primary surplus target and introduction of additional sources of revenue to make up for shortfalls due to tax policy adjustments.

“However, the Budgeted expenditure is higher than we have previously forecast – albeit due to higher interest payments – and will likely result in a wider fiscal deficit for 2025 and slower path of fiscal consolidation than our previous estimates. The Budget underscores the challenge that Sri Lanka’s fiscal authorities will continue to face because of its still weak debt affordability, still narrow revenue base, and underlying social constraints,” said Moody’s Ratings Vice President – Senior Analyst Christian Fang.