Fund allocation for EXIM Bank creates controversy

The setting up of an Export Import Bank (EXIM Bank) in Sri Lanka, initially due in 2016, has run into fresh controversy after two separate allocations were made for its proposed operation, economic analysts said.

The proposal to set up the EXIM Bank was first made in the 2016 budget with a Rs. 50 million allocation. But because it was implemented, it was repeated in the 2017 budget with an allocation of Rs. 10 billion.

However earlier this month, the government presented a supplementary estimate in parliament allocating another Rs.10 billion for the yet-to-be-set-up bank, triggering confusion in the Treasury. A supplementary estimate is presented only to meet new or increased costs in an already completed project, which in this case is not.

“It unclear as to why the government presented this supplementary estimate when the money has been already been allocated it from two previous budgets and passed in parliament,” an economic analyst said.