Govt. to formalise powers of Public Debt Management Office under new regulations

Wednesday, 19 November 2025 00:31 - - {{hitsCtrl.values.hits}}

The Government has taken the next step toward fully operationalising the Public Debt Management Act No. 33 of 2024, with Cabinet of Ministers on Monday approving to submit newly issued regulations to Parliament for concurrence.

The orders, published as Public Debt Management Orders No. 02 of 2025 in Extraordinary Gazette No. 2459/52 on 24 October 2025, set out the framework under which the Public Debt Management Office (PDMO) will oversee and regulate primary dealers in government securities.

Under Section 16 of the Act, authority to issue government loan securities has already been transferred from the Central Bank to the PDMO. Section 31 vests the Minister of Finance with the power to appoint primary traders and issue relevant directives.

Cabinet Spokesman and Minister Dr. Nalinda Jayatissa, addressing the weekly post-Cabinet media briefing yesterday said the newly gazetted orders formalise these responsibilities by empowering the PDMO to provide guidance, issue operational guidelines, monitor compliance, and evaluate the performance of primary traders involved in direct transactions during the issuance of government securities.

He said the new legislation also outlines the role of the Office in overseeing non-dealer bidders and recommending corrective actions when required.

Dr. Jayatissa said the regulations were necessary to ensure the smooth adaptation of responsibilities under the new legal framework.

“With the implementation of the Public Debt Management Act No. 33 of 2024, these functions will be transferred to the Public Debt Management Office. This amendment has been submitted to make regulations regarding a number of matters to be carried out by the Office, such as monitoring the performance of primary marketers and issuing recommendations when necessary,” he said.

Dr. Jayatissa noted that as the Act is relatively new, operational procedures and governance mechanisms are being phased in. He said the submission of the orders to Parliament marks an “identified development” in ensuring that the PDMO’s expanded mandate is implemented with proper regulatory clarity.

The proposal to this effect was submitted by President Anura Kumara Dissanayake, in his capacity as Finance, Planning and Economic Development Minister.