As enacted

Contents

Public Financial Management Act 2024 · As enacted · Part III · Fiscal Responsibility

17. Guarantee limit

Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk

(1)

The aggregate stock of outstanding Government guarantees at the end of each financial year shall not exceed 7.5 per centum of the average gross domestic product

(hereinafter referred to as the “guarantee limit”) of the relevant financial year and preceding two financial years.

(2)

The guarantee limit specified in subsection (1) shall be reviewed every five years after the date of coming into operation of this Act and be updated to ensure consistency with the debt reduction objective specified in the fiscal strategy statement.

(3)

In case of a breach of the guarantee limit specified in subsection (1), the Minister of Finance shall submit to

Parliament and publish on the official website of the Ministry of the Minister of Finance a report specifying, at a minimum-

(a)

the reason for such breach; and

(b)

actions to ensure compliance with the guarantee limit in the future.

Part IV

Preparation and Approval of Annual Budget

Read on from Part IV

Part V

Adjustments to the Annual Budget During the Year

Read on from Part V

Part VI

Budget Execution

Read on from Part VI

Part VII

Financial Management

Read on from Part VII

Part VIII

Statutory Funds

Read on from Part VIII

Part IX

Public Investment Management

Read on from Part IX

Part X

Government Borrowings and Guarantees

Read on from Part X

Part XI

Accounting and Reporting

Read on from Part XI

Part XII

State Owned Enterprises

Read on from Part XII

Part XIII

Provincial Councils and Local Authorities

Read on from Part XIII

Part XIV

Cadre Management

Read on from Part XIV

Part XV

Offences and Penalties

Read on from Part XV

Part XVI

Miscellaneous Provisions

Read on from Part XVI

Part XVII

Repeals

Read on from Part XVII

Part XVIII

Interpretation

Read on from Part XVIII