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State Minister of Finance Shehan Semasinghe announced that the Government, under a new Central Bank Act, manages the budget deficit independently. Posting on ‘X’ (formerly Twitter), Semasinghe revealed that in the first six months of 2024, the Government repaid Rs. 129 billion more than it borrowed through treasury bonds and bills. The Government borrowed a total of Rs. 4,852 billion through these instruments but repaid Rs. 4,981 billion by rolling over the same instruments, emphasizing the importance of net borrowing over gross borrowing. He further stated that before overcoming the economic crisis, the Government's reliance on central bank financing led to an inflation rate as high as 70%. However, with the new central bank act, the Government now independently manages the budget deficit.
