LONDON, England – Sri Lanka will begin using the Commonwealth Meridian software next month to manage public debt as part of its 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 the country 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.
Speaking after meeting the delegation, Sri Lanka’s Treasury Secretary Dr Harshana Suriyapperuma welcomed Commonwealth support.
He said: “Our collaboration is vital so that the transition to the new system is smooth, and that the Ministry of Finance has the capacity and skills to support and use Commonwealth Meridian fully.”
A sustainable path
Dr Raymond Prasad praised Sri Lanka for taking “difficult but necessary decisions” that have put the economy on a sustainable recovery path.
He said: “Sri Lanka’s experience is a real-world example of how a country’s commitment to major economic reforms can translate into innovations in sovereign debt management. Sri Lanka’s resilience in complex negotiations to restructure its external debt offers valuable lessons for other countries facing similar challenges.”
Reflecting on this collaboration, Dr Ruth Kattumuri, senior director for the Commonwealth Secretariat’s Economic Development, Trade and Investment Directorate, reaffirmed the Commonwealth’s commitment to continue working with IMF and other key partners to support Sri Lanka with undertaking the necessary reforms, processes, and systems needed for sustainable debt management.
Currently, 45 countries around the world use the Commonwealth Meridian software to manage government debt portfolios worth a combined USD 4 trillion.
