⚠️ CoPF Raises Concerns Over PDMO Capacity to Manage Rs. 31.1 Tn Debt

• Debt Portfolio & Oversight Parliament’s Committee on Public Finance (CoPF) expressed serious concerns over whether the Public Debt Management Office (PDMO) possesses the technical capabilities, governance framework, and specialist expertise required to manage Sri Lanka’s Rs. 31.1 Tn government debt portfolio following the transfer of duties from the Central Bank. • Institutional Readiness & Staffing Fully operational since December 2025, CoPF warned that even a 10-basis-point error in borrowing decisions could have severe financial implications. • Approved Cadre: 80 staff positions (around 60 currently filled). • Executive Roles: Most filled; 1 Assistant Director-General position remains vacant pending disciplinary proceedings. • Training Budget: CoPF criticized the Finance Ministry’s Rs. 2 Mn training allocation as inadequate for managing billions in borrowings. The PDMO was ordered to submit a formal Training Needs Assessment within two weeks to justify higher budget allocations. • Strategy & Market Challenges The PDMO's medium-term strategy focuses on reducing reliance on Treasury Bills, increasing longer-term Treasury Bonds, and lowering external debt. However, CoPF questioned whether these goals are achievable given elevated domestic interest rates, urging the office to build in-house market expertise rather than relying on monetary policy to lower borrowing costs.