Govt. gazettes DDO

• Move aimed at domestic public debt optimisation and to ensure public debt sustainability
• Govt. says DDO will help secure speedy transition to economic recovery followed by sustainable economic growth benefitting people and future generations

The Government on Monday gazetted the Domestic Debt Optimisation following Parliamentary approval on Saturday.

The Extraordinary Gazette on ‘Registered stock and securities Ordinance (Chapter 420)’ was issued by President and Finance, Economic Stabilisation and National Policies Minister Ranil Wickremesinghe.

It said: “Whereas, Parliament of the Democratic Socialist Republic of Sri Lanka (Republic), pursuant to the decision of the Cabinet of Ministers of 28 June 2023, resolved that the domestic public debt of the Republic be optimised to ensure public debt sustainability of the Republic and, thereby to secure a speedy transition to economic recovery followed by sustainable economic growth, which would benefit the people of Sri Lanka and future generations and granted all requisite approval to implement the domestic debt optimisation.”

The new regulations are cited as the “Registered Stock and Securities (Conversion of Securities) Regulations, No. 02 of 2023”.

It authorises the Secretary to the Ministry of Finance, Economic Stabilisation and National Policies, and the Registrar of Public Debt to offer to any holder of any stock or securities issued in Sri Lanka under the provisions of the Ordinance or any other enactment the option of converting or exchanging, as the case may be, the holding as at 28 June 2023 or part thereof; to convert or exchange, as the case may be, 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 and  to specify the manner in which payment of interest is made and the conditions subject to which such Treasury Bonds may be converted or exchanged, as the case may be, under the Ordinance.

It also authorises the Secretary to the Ministry of Finance, Economic Stabilisation and National Policies, and the Registrar of Public Debt to create and issue under the Ordinance such an amount of the Treasury Bonds as may be necessary for the conversion or exchange of the securities as declared and authorised under the new Regulation.

The Extraordinary Gazette declared that all privileges, exemptions and immunities attaching by virtue of any written law in force in Sri Lanka to any stock or securities shall be deemed to be attached to any new registered stock or securities issued under this Ordinance in conversion or exchange, as the case may be.

It also authorised the Secretary to the Ministry of Finance, Economic Stabilisation and National Policies, and the Registrar of Public Debt to create and issue under the Ordinance such Treasury Bonds as may be necessary for the purpose of paying any expenses incurred in the creation and issue of Treasury Bonds as authorised by these Regulations.