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Last month's devastating tsunami will increase the strain on Sri Lanka's government finances, but help from donors will likely prevent a full-blown crisis, officials and analysts said Wednesday.
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Last month's devastating tsunami will increase the strain on Sri Lanka's government finances, but help from donors will likely prevent a full-blown crisis, officials and analysts said Wednesday. This year's budget deficit could widen to 9.

4%-9.8% of gross domestic product from a forecast 7.
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5% due to the cost of reconstruction after the tsunami, a senior official at the Central Bank of Sri Lanka told Dow Jones Newswires.

Public investment could increase by 0 million this year, or around 2.

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3% of GDP, but it will likely be funded by concessional assistance - soft loans and grants - from donors, he said.
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"The finance ministry is working on new numbers and preparing a mini budget which will include a revised revenue program and the impact of a debt moratorium," said the official, who declined to be named.

Pledges of assistance from donors increased sharply after huge waves lashed the island's coast Dec.

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26, killing more than 30,000 people and leaving hundreds of thousands homeless.
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