• Treasury Secretary and CBSL Chief to brief  COPF today on domestic debt optimisation plan; representations by creditors including banks, superannuation funds, insurance funds are to be heard thereafter 
• Following COPF analysis, these stakeholders will be summoned again tomorrow
• Parliament to debate on Saturday with vote likely on Sunday

The Committee on Public Finance (COPF) Chairman Dr. Harsha de Silva of the main Opposition SJB assured the parliamentary body will ensure critical oversight on the domestic debt optimisation (DDO) approved by the Cabinet last night. 

 “Critical times ahead! As the Chair of #COPF, I want to keep you informed about our crucial role and the big task at hand with the #DomesticDebt

-Optimisation in #SriLanka. This legislation holds immense significance for #lka economy's recovery and growth plan,” said de Silva via a tweet.

“All bills related to revenue and expenditure must go through COPF before going into debate and passage in Parliament. We will provide crucial oversight to ensure the success of this pivotal step in our economic recovery,” the SJB MP said.

Noting that to maintain stability and prevent panic in the markets, the Government has declared Friday a holiday, resulting in a 5-day closure of banks, de Silva said: “We understand the sensitivity of the situation and the need to avoid unnecessary volatility.” 

Via his tweets COPF Chief also provided a timeline for the #DDO plan following its approval yesterday.On Thursday and Friday, COPF will carefully scrutinise the plan comprehensively, prioritising the stability of banks and the safety of people’s funds (EPF).

“On Thursday ,29 June we will invite the CBSL  Governor, Treasury Secretary and officials to brief COPF members on the DDO plan. This session will provide important insights into the plan's impact and feasibility. We have opened the COPF sessions to all interested MPs for max transparency,” de Silva said.

In the second session on Thursday, we have invited all creditors, including banks, superannuation funds, insurance funds, etc., to hear their views and concerns on the DDO plan. Their input is crucial in ensuring a well-rounded approach,” COPF Chie added.

After a thorough review, on Friday, 30 June COPF will once again gather all including Ministry of Finance, CBSL officials, and creditors, to foster discussion and hear their views. 

“Our aim is to ensure the DDO is executed effectively, meeting our IMF targets while maintaining financial system stability,” de Silva said.

Following the scrutiny by COPF, the DDO plan will go into debate in Parliament during the weekend (1 and 2 July). “We anticipate a vote to be held to approve the plan, working towards reducing the Debt-to-GDP from 125% to 95% and Gross Financing Needs (GFN) from 37.5% to 13%,” COPF Chairman de Silva added. 

Cabinet approved DDO a damp squib?

Cabinet approval to amend Banking Act No. 30 of 1988