Sri Lanka’s Swift Economic Recovery from Bankruptcy Sets an Example for Crisis-Hit Nations

Date:

September 21, Colombo (LNW): Former Finance Ministry Secretary Dr. R. H. S. Samaratunga announced yesterday that Sri Lanka’s rapid exit from bankruptcy, achieved through strategic debt restructuring within just two and a half years after an unprecedented economic crisis, stands as a model for other nations facing similar challenges.

The government has successfully restructured debt in three different ways, enabling the repayment of a total of US$ 84 billion. Additionally, Dr. Samaratunga highlighted that Sri Lanka has secured restructuring and concessions for debt amounting to US$ 17.5 billion.

To safeguard against future economic downturns, the former Secretary emphasized that the government has enacted five key legislative measures. The Central Bank of Sri Lanka Act was introduced to regulate money printing, while the Public Financial Management (PFM) Act of 2024 aims to prevent the misuse of public funds for political purposes.

The Fiscal Responsible Management Act has also been enacted to ensure disciplined fiscal policies. Moreover, the Public Debt Management (PDM) Act of 2024 was introduced to enforce strict guidelines for the government in managing credit facilities responsibly, irrespective of the political party in power.

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