Sri Lanka president presents budget aimed at stemming crisis

Sri Lankan President Ranil Wickremesinghe on Tuesday presented an interim budget aimed at stemming the country's worst financial crisis in decades.

Here are the highlights from the budget speech of Wickremesinghe, who also serves as the country's finance minister. IMF

* Wickremesinghe says talks with the IMF "have reached a successful level" * Says hope to start talks with creditors

* After IMF program concludes, decisions will be presented to parliament TARGETS

* Targeting inflation in mid-single digits * Target medium-term economic growth at 5%

* Target to increase public revenue to 15% of GDP by 2025 from 8.2% * Aim to have a stable economy by 2026

* Aim to bring debt to GDP ratio below 100% in the medium term REFORMS

* Will encourage FDI and joint ventures to develop Sri Lanka's natural resources * Loss-making state enterprises to be restructured under a special unit

* New legislation to be introduced to strengthen fiscal management * National debt management agency to be established under the finance ministry

* New laws to be introduced to restructure over-leveraged companies in line with U.S. bankruptcy law * Will introduce a trade adjustment program to encourage exports

* Will restart efforts to negotiate free trade agreements * Policies will be introduced to encourage renewable energy

BANKING/TAXATION * VAT to be increased to 15% from 12% from September 1

* Fresh taxes to be introduced in 2023 budget * New central bank act to be introduced

* Central bank act to reduce politicization and money printing of monetary authority * Plan to increase reserves and reduce the impact on the exchange rate

WELFARE * New system to be established to better target welfare, the funds sent directly to bank accounts

* Additional 4.6 billion Sri Lankan rupees ($12.85 million) for welfare support in the next four months EXPENDITURE

* $110 mln allocated for urea imports for rice farmers * $70 mln allocated to procure cooking gas imports ($1 = 358.0000 Sri Lankan rupees)