Press briefing of Cabinet Decision taken on 2017-06-20

Liability management for the improvement of Public Debt Management

- The Government Debt Level of Sri Lanka, as of now, amounts to Rs.9,387 billion and it has become a national concern over the debt sustainability due to it being 76% of the Government revenue for the year 2016. Although, the Government of Sri Lanka has never defaulted repayment of debt any time before, it has to adopt appropriate debt reform methods to prevent any potential future risk. Accordingly, the proposal made by Hon. Ranil Wickremasinghe, the Prime Minister in his capacity as the Minister of National Policies and Economic Affairs, to instruct the Legal Draftsman to draft a Bill to make use of liability management as a strategy for active Public Debt Management, and to take other measures necessary for liability management according to the relevant Constitutional provisions , was approved by the Cabinet.