Sri Lanka set to manage public debt using Commonwealth software from next month

Sri Lanka will begin using the Commonwealth Meridian software from next month to manage public debt as part of the economic recovery plan.

The decision to adopt a new system follows recommendations from the International Monetary Fund (IMF) and World Bank to establish a Public Debt Management Office. It comes after Sri Lanka defaulted on its foreign debt in 2022 during a severe economic crisis, which forced it to seek IMF assistance.

Since then, the government has been working with the IMF and World Bank on reforms to restore economic stability, including restructuring debt and improving the management of its borrowings.

Commonwealth support

At the IMF’s request, the Commonwealth Secretariat has been advising the government alongside the IMF and World Bank on the legal framework, governance and systems needed for its newly established debt office.

After reviewing several options, the government chose Commonwealth Meridian in October 2024 for its cost-effectiveness, compatibility with existing systems, and full debt management features, available through Sri Lanka’s Commonwealth membership.

Commonwealth Meridian is comprehensive debt management software that helps governments record, analyse, manage and monitor various types of public debt with greater accuracy and transparency.

Earlier this month, a Commonwealth delegation comprising Dr Raymond Prasad, Head of its Debt Management Unit, and Mac Banda, Adviser and Systems Team Leader, visited Colombo to plan the deployment of Commonwealth Meridian. This included preparations for staff training and data migration to the new software.

Currently, 45 countries around the world use the Commonwealth Meridian software to manage government debt portfolios worth a combined USD 4 trillion.