Public Debt Management Act 2024 · As enacted · Part III · Government Borrowing and Debt Management
13. Borrowing purposes
Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk
Official translationFrom Department of Government Printing, unchanged
The purposes for which the Government may borrow are –
to finance any deficit in the annual Government budget approved by Parliament;
to manage cash flow including to build up and maintain a liquidity buffer at a level or at a range determined by the Minister;
to lend funds to Provincial Councils, local authorities, State owned enterprises and any other entity as may be approved by Parliament;
to honour obligations under called Government guarantees;
to refinance outstanding debt of the Government, including repayment of a loan or credit prior to its maturity date and repurchase of Government debt securities;
to immediately respond to effects of unforeseen circumstances caused by a catastrophic emergency, in cases where the additional expenditure cannot be funded through virement procedures or through an allocation from the annual budget reserve or other similar mechanisms to make in-year adjustments to the annual budget as provided pursuant to relevant legislation for public financial management or through the Contingencies Fund under Article 151 of the Constitution;
to finance any expenditure that may arise under paragraphs (3) and (4) of Article 150 of the
Constitution;
to support the balance of payments of Sri Lanka by replenishing its foreign currency reserves; and
for any other purpose as may be approved by
Parliament.
Where borrowing is for any of the purposes of paragraph (f) of subsection (1), the Minister shall as soon as practicable but not later than fifteen working days after the conclusion of such borrowing, inform Parliament of the terms and conditions of the borrowing.
Part IV
Government Loan Guarantees, Government On-Lending, Suppliers’ Credit Agreements and Finance Lease Agreements
Part V
Records and Publication of Public Debt and Finance Arrangements
Part VI
Annual Reporting to Parliament
Part VII
Borrowing and Issuance of Guarantees by State Owned Enterprises and Reporting by Provincial Councils, Local Authorities and State Owned Enterprises
Part VIII
Offences and Penalties
Part IX