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Thursday, November 5, 1998 Published at 15:11 GMT


World: South Asia

Sri Lanka increases national security levy


Sri Lanka has announced an increase in its national security tax to meet increasing defence expenditure and contain the overall budget deficit.

Presenting the budget, the deputy finance minister, G L Peiris, described the war against the Tamil Tigers as destructive and costly.

But he said the tax would not be a permanent one.

The BBC Colombo correspondent says defence spending looks set to continue as a major drain on the economy.

From the newsroom of the BBC World Service



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