Debt obligations - Lanka has unblemished record - CB Governor

Ramani Kangaraarachchi

Sri Lanka has never defaulted payment of any loan and has maintained an unblemished record in servicing debt obligations said, Central Bank Governor Ajith Nivard Cabraal at the presentation of Road Map Monetary and Financial sector policies for 2009 last week.

He said that the Public Debt Department (PDD) of the Central Bank plays an important role as the agent responsible for the management of the Government’s domestic and foreign debt and currently the PDD services 655 loans, while issuing various debt instruments to raise loans from the domestic sources.

He said that as at end October 2008, the total debt portfolio stood at Rs. 3,379 billion and the remarkable achievement maintaining the unblemished record has been possible due to the untiring work performed by the PDD in managing this debt portfolio efficiently and professionally.

The year 2009, would be a testing time with the effects of slowdown in major economies spilling over to all other countries, affecting their performance as well. It would require concerted efforts by monetary authorities and governments the world over to safeguard the economies and keep them buoyant, said Cabraal.

Meanwhile, the Central Bank commemorates 60 years of unblemished endurance of the Monetary Law Act (MLA) No 58 of 1949 which was adopted based on the farsighted draft bill prepared by John Exter, an eminent Economist of the Federal Reserve System of the USA.

The Governor said that the adoption of the MLA completely changed the financial architecture of the country by creating an independent monetary system and the Central Bank of Sri Lanka, replacing the Currency Board System.