Sri Lanka’s government cuts expenses as economy tanks

By BHARATHA MALLAWARACHI
Associated Press

COLOMBO, Sri Lanka (AP) — Sri Lanka’s government says it’s cutting down expenses in the latest austerity drive to help it recover from its worst economic crisis. Government spokesman and Media Minister Bandula Gunawardena said each ministry’s annual budget will be cut 5%. He said that the government is “trying its best to curtail other expenses too.” Sri Lanka’s Parliament last month approved a $15 billion budget, which provides for the restructuring of state-owned enterprises, reduces subsidies for electricity, and increases taxes based on proposals by the International Monetary Fund under a preliminary $2.9 billion bailout plan. Unsustainable government debt, a balance of payments crisis and the impact of the pandemic led to severe shortages of essentials and triggered a political upheaval.