CoPF calls for stronger public debt management and staff training
The Committee on Public Finance (CoPF) has reviewed the first Annual Report for 2025 of the Public Debt Management Office (PDMO), focusing on rising public debt, debt servicing challenges, and the need to strengthen public debt management through better coordination, staff training, and greater transparency.
The discussion took place during a recent CoPF meeting in Parliament chaired by Member of Parliament Dr. Harsha de Silva. Members of Parliament Ravi Karunanayake, Ajith Agalakada, Nimal Palihena, Attorney-at-Law Chithral Fernando, Wijesiri Basnayake, M.K.M. Aslam, Thilina Samarakoon, and Attorney-at-Law Lakmali Hemachandra also attended the meeting.
The Committee paid particular attention to the impact of the increase in Sri Lanka’s public debt stock during 2025, changes in interest rates, and the depreciation of the Sri Lankan Rupee on public debt servicing. Members also discussed the importance of close coordination between the Central Bank of Sri Lanka and the Ministry of Finance in managing public debt.
Officials explained that the Public Debt Management Office was established under the Public Debt Management Act, No. 33 of 2024, to bring public debt management under a single institution. Its main responsibilities include managing public debt, ensuring debt sustainability, preparing the Medium-Term Debt Management Strategy, and submitting the Annual Public Debt Management Report to Parliament.
The Committee also held a detailed discussion on the shortage of human resources within the PDMO and the need to provide officers with specialized training in international financial markets and modern debt management practices. Officials informed the Committee about capacity-building programmes currently being carried out with technical assistance from the International Monetary Fund (IMF).
Following the discussion, the Committee instructed officials to submit the Training Needs Assessment (TNA) report being prepared for the PDMO within two weeks.
According to officials, the report will help identify knowledge and skills gaps among PDMO staff, develop a structured annual training plan, identify technical training needs in areas such as international financial market operations, debt management and risk management, and estimate the budget required for future training programmes.
The Committee also discussed government guarantees provided to state-owned enterprises, the progress of debt restructuring, and future measures needed to further improve transparency and efficiency in Sri Lanka’s public debt management.
