Sri Lanka will strive to tighten its belt and maintain policy consistency to improve its debt rating and help make capital Colombo a global financial center, the country's finance minister told CNBC on Monday.
The new administration will raise value-added tax (VAT) and reintroduce capital gains taxes as it seeks to improve Sri Lanka's finance outlook, Ravi Karunanayake told CNBC's "Capital Connection."
The finance minister added his administration's long term target is to reduce Sri Lanka's budget deficit to 3.5 percent of gross domestic product (GDP) by 2019-2020. Government data showed Sri Lanka's budget deficit was at 6 percent of GDP for 2015.
Minister has told that the current administration, which came into power last year, inherited plenty of problems from the previous government that have seen Sri Lanka's credit rating take a hit.