Public debt management distracted beyond control
Public debt management in almost all countries suffers same non-curable headache. Its prime symptoms relate to debt stock, maturity profile, cost, liquidity and market behaviour prevailing beyond control. However, politics of debt management can carry diverse stories. At the dawn of the year 2026, the new debt management office of the government (PDMO) of Sri Lanka took-over the 75 years old headache of public debt management carried out by the Central Bank from its inception in 1950. The Central Bank being the monetary authority of the country had the legal and operational teeth to mange both debt and monetary system easily. The Central Bank's job was quite convenient as the monetary system instituted in 1950 to be administered by the Central Bank was built on public debt which is the outcome of the fiscal operations whereas the Central Bank also enjoyed some fiscal powers and coordination. As a result, money and debt were managed as two sides of the same mone...