December 22, Colombo (LNW): Sri Lanka is in the process of establishing a dedicated Public Debt Management Office (PDMO), with plans for it to be fully operational by January 2026, according to an announcement from the Ministry of Finance.
This new office aims to overhaul the way the government manages its public debt and borrowing, ensuring greater accountability and transparency in the nation’s financial operations.
The PDMO officially began its activities on December 02, 2024, following the enactment of the Public Debt Management Act No. 33 of 2024, which came into effect on November 25.
The establishment of this independent office is a significant step towards centralising debt management functions that were previously spread across multiple government agencies, including the Central Bank, the Department of External Resources, and the Department of Treasury Operations.
The primary goal of the PDMO is to create a more structured and coordinated approach to managing Sri Lanka’s public debt, ensuring that borrowing is conducted in a transparent and sustainable manner.
It will be responsible for overseeing the government’s debt portfolio, which includes loan guarantees, on-lending activities, and comprehensive public debt reporting.
The office will also be tasked with formulating a medium-term debt management strategy, coordinating both domestic and international borrowings, and ensuring that debt obligations are met in a timely manner.
The new office will also play a crucial role in aligning borrowing plans from State-Owned Enterprises (SOEs) and other public entities with the national debt management strategy.
This shift ensures that all public sector borrowing will now be coordinated through the PDMO, as mandated by the new law.
By centralising these operations, the government aims to strengthen oversight and reduce the risk of excessive or mismanaged borrowing.
The PDMO will be headed by a Director-General, who will be appointed by the Cabinet and report directly to the Minister of Finance.
The establishment of this office marks a key development in Sri Lanka’s ongoing efforts to enhance fiscal discipline and ensure that its borrowing practices are aligned with international standards of transparency and accountability.
