Government Establishes Public Debt Management Office

The PDMO officially began operations on December 2, 2024, following the enactment of the Public Debt Management Act No. 33 of 2024, which came into effect on November 25. This independent office aims to improve the management of public debt by centralizing operations, enhancing accountability, and ensuring greater transparency in borrowing practices.

The PDMO will oversee government debt management, loan guarantees, public debt reporting, and on-lending operations. It will also be responsible for preparing a medium-term debt management strategy, coordinating domestic and foreign borrowings, and ensuring timely debt repayments.

The new office will take over related responsibilities previously handled by the Central Bank, Department of External Resources, and Department of Treasury Operations. A Director-General, appointed by the Cabinet, will lead the PDMO and report directly to the Minister of Finance.

Additionally, State-Owned Enterprises and other entities must align their borrowing plans with the PDMO under the provisions of the new law. The initiative marks a significant step toward improving fiscal discipline and debt sustainability in Sri Lanka.