Do More With Reuters
Partner Services

Sri Lanka boosts election, war budget for '09

Thu Oct 9, 2008 6:34pm IST
 
Email | Print | | Single Page
[-] Text [+]

By Shihar Aneez

COLOMBO (Reuters) - Sri Lanka's proposed 2009 budget on Thursday showed the government planning to spend 18 percent of it on a war with separatist rebels, and nearly tripling its elections expenditure.

The overall budget of 980.6 billion Sri Lanka rupees ($9.09 billion) rose 6 percent year-on-year, and proposed a 20 percent increase in government borrowing some analysts and ratings agencies have criticised as unsustainably high.

The bill submitted to parliament on Thursday showed defence spending rising by 6.4 percent to 177.06 billion rupees.

The appropriation bill also showed the government had nearly tripled funds for the Elections Department to 1.1 billion rupees, compared to this year's 284.5 million rupees -- which financed three provincial polls and one local election.

The country has been rife with speculation about a general election, especially now that the government is increasingly confident of a conventional military victory against the separatist Tamil Tiger rebels.

"If the government can capture Kilinochchi and Mullaitivu, they might even go for a general election," Vajira Premawardhena, head of research at Lanka Orix Securities, said, referring to the two major rebel-held towns.

President Mahinda Rajapaksa has said he would hold local and provincial elections in northern Sri Lanka when it is captured from the Liberation Tigers of Tamil Eelam (LTTE). That is part of his plan for devolving power to the predominantly Tamil region.

To finish the job will require garrisoning troops in formerly rebel-held territory. The 2009 defence budget is estimated at 177.06 billion rupees, 6.4 percent higher than the 166.45 billion rupees set aside for this year.  Continued...

Dubai Debt Fears

Villas are seen on the The Palm, Jumeirah, with Atlantis, The Palm, under construction on the breakwater (crescent), May 3, 2008.  REUTERS/Jumana El Heloueh

Banks outside the Gulf played down their exposure to Dubai debt, after fears the emirate could default and even derail world economic recovery prompted a sell-off in global markets.  Full Article | Slideshow 

Hoardings alongside Nakheel's Waterfront construction site at Jebel Ali in Dubai November 26, 2009.  REUTERS/Steve Crisp
Dubai Debt Fears

Investors recoiled from risky assets and dumped shares in Asian banks and builders, fearing a debt default could reignite the financial turmoil.  Full Article 

People light candles at a vigil to commemorate the victims of last year's militant attacks in Mumbai, in front of the India Gate in New Delhi November 26, 2009. Mumbai held tearful memorials and police staged a show of strength on Thursday as India's financial hub marked the first anniversary of militant raids that killed 166 people and pushed up tensions with Pakistan. REUTERS/Rupak De Chowdhuri
One Year Later

Mumbai held tearful memorials and police staged a show of strength as it marked the first anniversary of militant raids that killed 166 people and pushed up tensions with Pakistan.  Slideshow | Full Coverage