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Government to utilise foreign loans of USD 1.4 billion in 2021 

The planned annual utilization of foreign loans as agreed with the World Bank, Asian Development Bank (ADB) and Japan International Cooperation Agency (JICA) will be approximately USD 1,400 million with plans to obtain bilateral development loans of approximately USD 400 million.

This was revealed in the Report of the Committee on Public Finance presented in Parliament.      

The government has pledged to utilize local resources, technology and knowledge to the maximum possible limits so that the most of the funds will be utilised within Sri Lanka.  

It has also given special attention to enhance Digital Governance using Information Technology as a tool to simplify government mechanisms as well as market structures and processes, thus ensuring efficient and people-focused service delivery and exchange of knowledge.  

Under the government's vision to create a ‘Technology based society and digitally inclusive Sri Lanka”, emphasis will be paid to expand the availability of mobile and fixed broadband services throughout the country by developing required infrastructure..  

The Government also intends to introduce a simplified tax policy with a mandatory 'E-filing: system for all companies, and use of Tax Identification Number (TIN) in all tax related transactions.

It is also intended to launch suitable programmes to enhance the professional skills of the security forces in keeping with the Government's primary policy of "Priority to National Security" to provide "a safe and a secure country for all", in a medium term plan.  

It is expected that the exchange rates (USD/LKR) will remain stable with minor fluctuations.

It is also expected that the real GDP growth rate will be 5.0 during the year 2020.  

An economic stimulus package will be introduced to revitalize the economy through a simplified tax system relying on large transactions while reforming corporate management structures of State Owned Enterprises and combining effects on economic activities.  

This has become necessary due to lockdown of the country coupled with imposition of curfew in selected areas to counter the spreading of COVID-19 and the country was expected to return to normalcy from mid 2020.

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