CB offers clarification on Govt. debt recording

Friday, 9 February 2018 00:00 - - {{hitsCtrl.values.hits}}

The Central Bank yesterday issued a clarification on media reports on Government debt recording and maintenance of accounts published yesterday based on comments by Auditor General Gamini Wijesinghe.

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

The Central Bank regularly and closely coordinates with the Ministry of Finance and ERD over the accuracy of its published debt statistics and in this connection it also has access to the debt recording system maintained by ERD.

Further, in the compilation and servicing of Central Government debt, the Central Bank uses its own recording systems with respect to domestic and international commercial borrowings. Central Government debt, so compiled by the Central Bank, has been reviewed and accepted by international agencies including the International Monetary Fund.

In addition, the Central Bank wishes to emphasise that to date the Sri Lankan Government has maintained an unblemished record of debt servicing made in accordance with service payment obligations recognised through debt recording systems.

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