"Not hostile to donors but the country must prepare own budget"

While the government is happy of the growth of certain areas of activity during the recent past, the government will be mainly concentrating on the development of rural areas he said.

Speaking to BBC Sandeshaya on the eve of budget proposals, minister Amunugama said the UPFA did not enter into consultations with the international donor agencies like earlier governments.

However business chambers in the country were consulted so that investment would not be hindered, he said.

"The donor agencies now want the countries themselves to have ownership," said Dr. Amunugama.

He said the government will discuss the budget with the international lending agencies after bringing it to the parliament.

More pay

"We are not hostile to them, but we think, and I think they also agree, that the country must prepare its own budget," minister Amunugama said.

Thursday's budget proposals will give a pay rise to the public sector workers, the minister announced.

However, inflation due to higher pay will be contained by more dynamic in the goods and services sector.

Privatisation  There will be no privatisation, but only restructure of management Minister Amunugama

The minister who said that "we have to work more, produce more and earn more," hoped that it will act as an anti-inflationary measure.

More Tax

Half of the population that should be paying are evading tax, said Dr. Amunugama. "We will implement a tax net to catch them," he told the BBC Sandeshaya.

The country is already self sufficient in rice, according to the minister who said that a major thrust will be on the agriculture sector.

Sarath Amunugama said there will be a substantial amount of money allocated for the development of the war-torn North East.

"There will be no privatisation, but only restructure of management," said the finance minister.

Journalists attacked

The Finance Minister lashed out at the country's English press and an international wire service at a ceremony on Wednesday where journalists are invited to take photographs of the minister with the briefcase containing the budget proposals.

When asked by BBC Sandeshaya about the incident the minister said that, "painting a bad picture on the economic situation of the country" puts off investors.