Sri Lanka Government issued a Gazette on Domestic Debt Optimization

A special gazette notification on Domestic Debt Optimization (DDO) was published on Monday (July 03) under which several directives were issued to the Finance Ministry Secretary and the Public Debt Registrar.

The gazette has been issued by Sri Lanka President Ranil Wickremesinghe in his capacity as the Minister of Finance, under Section 55 read with Section 34 of the Registered Stock and Securities Ordinance (Chapter 420) read with paragraph (2) of Article 44 of the Constitution.

Parliament on Saturday (July 01) passed the resolution on the Domestic Debt Optimization programme (DDO) with amendments, by a majority of 60 votes, with 122 votes and 62 votes against.

The government says the DDO strategy intends to optimize domestic public debt to ensure public debt sustainability and to secure a speedy transition to economic recovery followed by sustainable economic growth.

As per the gazette notification, the Finance Ministry Secretary and the Public Debt Registrar have been authorized to offer any stock or securities holder in Sri Lanka, under the provisions of the Ordinance or any other enactment, the option of converting or exchanging the holding as at June 28 or part thereof.

The communiqué also permits the conversion or exchange of any stock or securities issued in Sri Lanka under the provisions of the Ordinance or any other enactment held by holders into Treasury Bonds to be issued under the Ordinance.