Hon. Sunil Rajapaksha

¶ 01 Hon. Deputy Speaker, let me speak on debt. Cartoons often depict Sri Lanka buried under a “debt mountain.” Many advanced countries—France, USA, Italy, Japan, Canada, UK, Spain, Germany, China—hold debt exceeding 100% of GDP, yet they are not labeled bankrupt because their debts fund productive assets. In Sri Lanka, over past decades, too often loans were aligned to commissions and deals—hence labels like “Mr. Ten Percent.”

¶ 02 The key is not debt per se but using it for productive, well-managed projects. That is why debt management is essential. Our aim is to develop the domestic debt market, meet fiscal needs at minimal cost and risk, and ensure transparency. We enacted the Public Debt Management Act, No. 33 of 2024, to centralize borrowing, issuance, debt servicing, collateralization, guarantees, and agreements, through a Debt Management Office, within a proper governance framework.

¶ 03 This will ensure clarity: why we borrow, how we will repay, what assets and revenues arise, and the repayment capacity. The Act applies to ministries, departments, district secretariats, special spending units, statutory funds, SOEs, provincial councils, and their entities. Centralizing debt under the DMO will improve records, transparency, and public reporting.

¶ 04 Hon. Deputy Speaker: Hon. Member, your time is up.

¶ 05 Additionally, this will establish sustainability, long-term fiscal discipline, and transparent borrowing procedures. Questions about where loans go, for what, and how repaid will be answered under the DMO’s reporting.

¶ 06 Thank you.