Liability Management bill presented in P’ment

Tuesday, 20 February 2018 00:37 - - {{hitsCtrl.values.hits}}

By Ashwin Hemmathagama – Our Lobby Correspondent

The Ministry of National Policies and Economic Affairs moved the Active Liability Management Bill yesterday in the Parliament with the aim to authorise the raising of loans within the country or offshore to improve public debt management.

The Bill also ensures that the financial needs and payment obligations of the Government are met at the lowest possible cost over the medium to long-term consistent with a prudent degree of risk.

However, the Parliament may, from time to time, by resolution, approve to raise a sum of money during a particular financial year which will not exceed 10% of the total outstanding debt as at the end of the preceding financial year, as a loan whether in or outside Sri Lanka, in terms of the relevant laws for moneys to be raised including the provisions of the Monetary Law Act (Chapter 422), the Local Treasury Bills Ordinance (Chapter 417), Registered Stocks and Securities Ordinance (Chapter 420), or the Foreign Loans Act, No. 29 of 1957, for and on behalf of the Government for the purposes of refinancing and pre-financing of public debts of the Government.