Sri Lanka sets 2024 budget deficit target of 9.1% of GDP

Sri Lanka's government set a budget deficit target of 2.85 trillion rupees in 2024, higher than the upwardly revised 2.4 trillion rupees in the current year, according to the budget document presented in the parliament on Monday.

The deficit would stand at 9.1% of GDP next year compared with 8.5% in 2023. Sri Lanka had originally set a deficit target of 7.9% in the budget for the current year.

Sri Lanka's economy is showing signs of recovery helped by a $2.9 billion bailout from the International Monetary Fund (IMF), which has warned of revenue shortfalls and backed a 12% deficit under its four-year programme.