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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

(1)

The purposes for which the Government may borrow are –

(a)

to finance any deficit in the annual Government budget approved by Parliament;

(b)

to manage cash flow including to build up and maintain a liquidity buffer at a level or at a range determined by the Minister;

(c)

to lend funds to Provincial Councils, local authorities, State owned enterprises and any other entity as may be approved by Parliament;

(d)

to honour obligations under called Government guarantees;

(e)

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;

(f)

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;

(g)

to finance any expenditure that may arise under paragraphs (3) and (4) of Article 150 of the

Constitution;

(h)

to support the balance of payments of Sri Lanka by replenishing its foreign currency reserves; and

(i)

for any other purpose as may be approved by

Parliament.

(2)

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

General