TEMPO.CO, Jakarta – Ministry of Finance Sri Lanka facing a cash crunch at a time when a severe economic crisis continues to haunt the South Asian island nation, a Sri Lankan cabinet spokesman said xinhua Wednesday, January 11, 2023.

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Sri Lankan Cabinet Spokesman Bandula Gunawardena told reporters that funds raised through taxes had dwindled.

As a result, the country’s finance ministry lacks funds to make the payments, Gunawardena said.

According to Gunawardena, the economic crisis that hit the country in 2022 had an impact on state revenues.

Hundreds of Sri Lankans lined up to get their basic necessities. Sri Lanka’s finance ministry is strapped for funds at a time of severe economic crisis that continues to haunt the South Asian island nation.

“Estimated tax revenue for the first three months of 2023 is low. However, we have to pay public sector salaries. Payments are made by the state finance ministry and not from our private funds,” he said. -he declares.

He revealed that the President had asked all ministries to reduce their budget allocations for 2023 by at least 5%.

Gunawardena said further spending cuts would be taken to mitigate the impact caused by the economic crisis.

The cabinet spokesperson explained that the state finance department receives funds from public taxes. The country had previously been able to print money and obtain loans, but now this could not be done because no one was willing to lend and the country could not print money.

Sri Lanka defaulted on its loans last year and is currently seeking International Monetary Fund (IMF) approval for a bailout to help the country recover from the crisis.

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XINHUA