PDMO gains global recognition with prestigious Commonwealth Award

Treasury Secretary Dr. Harshana Suriyapperuma 

Sri Lanka has achieved a landmark milestone in its public debt management reform journey, with the Public Debt Management Office (PDMO) being awarded “Debt Management Office of the Year (Asia-Pacific)” at the Commonwealth Debt Management Award Ceremony held at Marlborough House, London, on 26 March, in parallel with the Commonwealth Debt Management Forum held from 23–27 March.

This prestigious international recognition, achieved within just 15 months of the PDMO’s establishment, stands as a powerful endorsement of Sri Lanka’s bold and decisive reforms in public debt management following the 2022 economic crisis. It reflects the country’s successful transition toward a modern, resilient, and globally aligned debt management framework.

The PDMO was established under the Public Debt Management Act, No. 33 of 2024, a landmark reform that consolidated Sri Lanka’s previously fragmented debt management structure into a unified and comprehensive legal framework. These reforms were undertaken in line with Sri Lanka’s commitments under the International Monetary Fund-supported Extended Fund Facility program, with a strong focus on enhancing transparency, strengthening accountability, and embedding robust governance practices.

Treasury Secretary Harshana Suriyapperuma said: “This award represents a remarkable global recognition of Sri Lanka’s unwavering commitment to reforming and strengthening its public debt management framework in line with international best practices. Achieving such a milestone within a short period reflects the dedication, professionalism, and resilience of PDMO’s team, as well as the strong support extended by the Government and our international partners. 

We have transitioned from a fragmented and reactive system to a modern, strategy-driven framework anchored on transparency, accountability, and prudent risk management. This recognition further strengthens our resolve to continue building institutional capacity, enhancing credibility, and supporting Sri Lanka’s journey toward long-term economic stability and sustainable growth.”

Since the establishment of PDMO on 2 December 2024, it has rapidly delivered a series of transformative reforms that have reshaped the country’s debt management landscape. The introduction and annual publication of the Medium-Term Debt Management Strategy and the Annual Borrowing Plan from February 2025 marked a decisive shift toward a disciplined, strategy-driven borrowing framework. This ensures that all financing decisions are aligned with cost-risk optimisation principles, reflecting international best practices.

The strengthening of the legal and regulatory framework through the introduction of Public Debt Management Regulations and comprehensive operational guidelines has further enhanced institutional governance, internal controls, and operational efficiency. These reforms have established a clear structure for the Front Office, Middle Office, and Back Office, ensuring strong accountability and effective risk management across all functions.

A major institutional milestone was achieved in December 2025 when the PDMO assumed responsibility for conducting domestic government securities auctions from the Central Bank of Sri Lanka, which had performed this role for over 75 years as the Government’s agent. This transition marks a significant step in strengthening institutional autonomy and reflects the high level of preparedness, capacity, and coordination within the PDMO. The successful transfer also highlights the Central Bank’s continued support and collaboration during this important phase of reform.

The Public Debt Management Act has further strengthened Sri Lanka’s fiscal resilience by introducing a robust framework for managing risks associated with government guarantees and on-lending operations. By enabling the application of risk-based measures such as guarantee fees and on-lending premiums, the framework represents a forward-looking and prudent approach to managing contingent liabilities and safeguarding public finances.

Sri Lanka’s public debt management reforms have also significantly enhanced transparency and investor engagement. The establishment of a dedicated Investor Relations Unit within the PDMO represents a key institutional innovation, strengthening communication with investors and improving access to reliable and timely information. As a result, Sri Lanka has gained notable international recognition for its progress. The World Bank Debt Transparency Heatmap has recorded marked improvements across key indicators, while the Institute of International Finance has reported a substantial rise in Sri Lanka’s global investor relations ranking in 2025.

The recognition received at the Commonwealth Debt Management Forum 2026 marks a defining milestone in Sri Lanka’s public debt management reform journey. It firmly affirms the country’s transition toward a modern, transparent, and strategy-driven debt management framework aligned with international best practices. It also underscores Sri Lanka’s unwavering commitment to its vision of becoming a global role model in public debt management, recognised for trustworthiness, efficiency, and transparency.

With continued support from key development partners, including the International Monetary Fund, the World Bank, the Asian Development Bank, the Japan International Cooperation Agency, and the Commonwealth Secretariat, Sri Lanka is well positioned to further strengthen institutional capacity, sustain reform momentum, and ensure long-term debt sustainability.