Independent body to manage public debt

(LANKAPUVATH | COLOMBO) – The Government has planned to remove the responsibility of managing the public debt from the Central Bank of Sri Lanka and establish a separate independent agency under the Ministry of Finance for the purpose.

The Central Bank would assist the Finance Ministry in establishing this unit called the Public Debt Management Agency (PDMA).

The proposed PDMA, which is to be formed under the Finance Ministry is expected to be the sole authority responsible for the management of the public debt in the country. According to Central Bank Governor Dr. Nandalal Weerasinghe, the Public Debt Management Act is expected to be enacted by March 2024, leading to the establishment of the PDMA, which is expected to be operational by December 2024.

The intention of setting up such an independent institution under the Finance Ministry is to carry out public debt management or public debt servicing at a more optimal level.

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