Sri Lanka central bank statement on AGs comments on debt

ECONOMYNEXT – Sri Lanka’s central bank has issued a statement on comments made by the Auditor General on Sri Lanka’s debt and the classification and valuation.

Attention of the Central Bank of Sri Lanka (CBSL) has been drawn over the media reports on Government debt recording and maintenance of accounts published on 8th February 2018.

CBSL compiles and publishes Central Government debt based on its database on issuance of domestic debt and international commercial borrowings on behalf of the Government and also the information it receives from the Ministry of Finance (MoF) and External Resources Department (ERD) of the Ministry of National Policies and Economic Affairs.

CBSL regularly and closely coordinates with MoF and ERD towards the accuracy of its published debt statistics and in this connection it also has the accessibility to the debt recording system maintained by ERD. Further, in compilation and servicing of Central Government debt, CBSL uses its own recording systems with respect to domestic and international commercial borrowings. Central Government debt so compiled by CBSL has been reviewed and accepted by international agencies including the International Monetary Fund.

Also, CBSL wishes to emphasize that to-date, the Government of Sri Lanka has maintained an unblemished record of debt servicing made in accordance with service payment obligations recognized through debt recording systems.

Further, towards prudent management of Government debt portfolio, a debt management strategy is being formulated by CBSL for implementation and it is also in the process of streamlining debt servicing liabilities with the passage of Active Liability Management Act.

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