Sri Lanka Plans Biggest Budget-Deficit Reduction in Eight Years

Sri Lanka unveiled plans to slash its budget deficit by the most in eight years and pledged to cut taxes to spur economic growth after a 26-year civil war.

The island nation will narrow the budget shortfall to 8 percent of gross domestic product in 2010 from 9.9 percent in the previous year, Deputy Finance Minister Sarath Amunugama said in his budget speech in Colombo yesterday. The proposed reduction is the biggest since 2002.