Srilanka, Feb. 18 -- Economist Talal Rafi said the budget presentation of the new government has positive aspects which can improve the economy in the long term.

He said the budget states that the government is expecting 5% GDP growth for 2025, the highest allocation has been made for the health and education budget and a development bank is to be initiated.

Sri Lanka's financing costs are high due to high debt accumulated over the years. The total interest payments is estimated to be more than two times the total capital expenditure. The recurrent expenditure is four times the capital expenditure. As the economy grows, it would be recommended for the government in the medium to long term, to increase capital expenditure as capital exp...