The Parliament on 26.10.2018 resolved under section 3 of the Active Liability Management Act of 2018 (ALMA) that “a sum not exceeding Rs. 310.0 billion may be raised by the Government of Sri Lanka (GOSL) by way of loans, in or outside Sri Lanka for such purposes as specified in the provisions of the Active Liability Management Act No 8 of 2018”.
The GOSL is fully cognizant of its outstanding debt liabilities denominated in foreign and local currencies. In view of the necessity for institutionalizing a legal framework for managing the country’s public debt profile in a prudent manner that brings debt sustainability and macroeconomic stability amidst potential impact of exogenous and endogenous shocks, the Parliament enacted the ALMA in March 2018. The ALMA provides the legal framework for GOSL to raise loans in or outside Sri Lanka for management of public debt in terms of relevant laws, including the Monetary Law Act No. 58 of 1949, the Local Treasury Bills Ordinance (Chapter 417), Registered Stocks and Securities Ordinance (Chapter 420), and the Foreign Loan Act No. 29 of 1957.