The government’s much needed Liability Management Act is expected to be presented to Parliament by early 2018,Senior Advisor to the Ministry of Finance and Mass Media Mano Tittawella said yesterday, as he explained the government’s strategy to deal with its immense debt burden.
“We are discussing it with the Legal Draftsman’s Department now and the Bill is at an advanced stage”, he said addressing a post Budget Forum organised by Ernst and Young at the Hilton.
Budget 2018 brings the government closer to the precarious years of 2019-2021 where many of the borrowings are scheduled for repayment.
“We have had many unusual borrowings for economically unviable projects. Thus, we are looking at a bunching problem between 2019-2021 where we will have to repay debt close to USD 8-9 billion,” Tittawella said.
He added the new Bill will allow the government, “Reconstruct this debt on a long term basis on much more viable terms”.
Deputy Treasury Secretary S.R.Attygalle explained that whilst the Appropriation Bill only allowed the government to borrow for the present year, the new Bill will give them space to plan for the future.
“We will be able to accommodate those who wish to switch or exit their bonds through payment. This will give the government flexibility to counter that problem,” he added.
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