Govt. increases borrowing limit to Rs.1,088bn

The Attorney General (AG) has given clearance for the government’s move to increase the borrowing limit to Rs.1,088 billion from Rs.735 billion envisaged in the Appropriation Act in a bid to raise money to settle bills for transactions done by the former regime, Leader of the House and Minister Dinesh Gunawardane told Daily Mirror yesterday.

He said the incumbent government operated on Vote on Account approved by Parliament for the first quarter of this year. However, he said, the government needed an additional Rs.340 billion to settle outstanding bills for transactions done by the previous administration.

“We need to settle huge bills of fertiliser suppliers. There are also payments to be made to Ceylon Electricity Board (CEB) and Ceylon Petroleum Corporation. A motion will be presented in Parliament next week seeking approval to increase the borrowing limit. Party leaders discussed this in the presence of representatives from the Attorney General’s Department. They gave the green light to proceed,” he said. (Kelum Bandara)