Streamlining public debt management
The Central Bank of Sri Lanka has decided to divest Public Debt Management (PDM) responsibilities to the Ministry of Finance to enable it to focus on its core mandate of promoting price stability.
It also provided for the establishment of a consolidated Debt Management Office (DMO), which is one of the priority reforms outlined in the 2022 interim budget and is also part of the commitment under the IMF’s Extended Fund Facility Arrangement and the World Bank’s Development Policy Operation.
A new Public Debt Management Act to Parliament was enacted on June 18, 2024. The authorities are also in advanced stages of finalising the Public Debt Management Regulations that will be submitted to Parliament. The drafting of the Public Debt Management Guidelines, which defines the roles and responsibilities of the new Public Debt Management Office, is also in progress.
It also involved the appointment of a new Director General to head the Public Debt Management Office. With these actions, the stage is set to establish and operationalise the Public Debt Management Office in Sri Lanka’s Ministry of Finance.
Internal organisation of DMO: The two alternatives for the internal organisation of the DMO considered by the IMF mission were including and excluding the multilateral and bilateral relationship management functions.
It has recommended that the DMO comprises a small group of specialized professionals narrowly focused on PDM functions.
The fragmented institutional arrangement and legal framework have led to the duplication of public debt databases and the recording and reporting of public debt. The issuance and management of guarantees and on-lending of borrowed funds lack a framework and control system.
The new PDM law and consolidated institutional arrangement should contribute to strengthening debt data management, unifying debt reporting, and institutionalising a policy on issuing and managing debt guarantees and on-lending, consistent with the overall government risk management framework.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!