State Minister of Finance Ranjith Siyambalapitiya says that the Inland Revenue Act and the Appropriation Act will be amended in line with the Domestic Debt Optimisation strategy.
He stated this while speaking to the media in the Ruwanwella area regarding the next steps to be taken, following the parliamentary approval being received for the DDO strategy last evening.
Siyambalapitiya emphasized that initially the Central Bank of Sri Lanka (CBSL) will publish the decisions reached yesterday, through newspapers and other media.
At the same time, the state minister mentioned that simultaneously an invitation will be extended to all the retirement funds involved in the programme.
The State Minister said that following those discussions, an opportunity will be provided to take a decision after considering their alternative views, if any.
Furthermore, Siyambalapitiya revealed that the Inland Revenue Act and the Appropriation Act require amendments in line with the DDO strategy.
He mentioned that the President has been given powers to protect the people’s side on the matter and that the President will stand up for the protection of pensioners’ funds in particular.
The Resolution on Domestic Debt Optimization (DDO) was passed in Parliament with amendments yesterday (July 01), with a majority of 60 votes, with 122 votes in favour and 62 votes against.
Accordingly, the Secretary General of Parliament Kushani Rohanadeera had informed the Secretary to the Ministry of Finance, in writing, that the DDO strategy was passed in Parliament.
A full-day special parliamentary session took place on Saturday, during which lawmakers debated the restructuring of local debt, initially proposed in a bid to achieve debt sustainability and economic recovery.
On 28 June, the Cabinet of Ministers unanimously approved the proposed domestic debt restructuring strategy for restoring sovereign debt sustainability.
Following two days of extensive discussions on the strategy and its impact, the Committee on Public Finance (COPF), chaired by MP Dr. Harsha de Silva on 30 June, gave its approval for the proposed plan, with amendments binding the Finance Ministry to the proposed plan, ensuring adherence to the approved concept paper and addressing concerns about potential deviations.
Domestic debt restructuring is a key condition in the International Monetary Fund (IMF) program, through which a bailout package of USD 3 billion was approved for Sri Lanka in March 2023. The IMF program unlocks more help from international funding agencies. Accordingly, the World Bank, earlier this week, approved USD 700 million in financing as budgetary and welfare support for Sri Lanka.
