(Commonwealth)_ Sri Lanka will install Commonwealth Meridian software within a month in an effort to be able to better manage its public debt and aid its overall economic rebound. It is part of a slate of reforms being implemented with the advice of the International Monetary Fund (IMF) and World Bank following the country’s 2022 default on its debt.
The implementation of the system, following international best practices, aimed to establish a stand-alone Public Debt Management Office. The debt crisis that had brought about financial instability in the whole of the world in 2022 compelled Sri Lanka to turn to the IMF for help. The government has since been contributing to the overall recovery in an attempt to attain economic stability via debt restructurings and judicious fiscal discipline.
International cooperation and assistance
The Commonwealth Secretariat, as an IMF agent, has been operating in close collaboration with the Government of Sri Lanka, supplying technical assistance in coordination with the IMF and World Bank. This involved designing the legal framework, governing institutions, and operation to allow the newly created debt management office in Sri Lanka.
Sri Lanka opted for the Commonwealth Meridian in October 2024 after considering other options. It opted on the basis of software cost, installed infrastructure compatibility, and performance. Sri Lanka’s membership in the Commonwealth facilitated ease of application because of availability without exorbitant fees from other websites.
Commonwealth Meridian functionality
Commonwealth Meridian is a highly sophisticated system of public debt management whereby governments can account for, analyze, monitor, and track borrowing accurately. Among its many features are monitoring various types of debt, reporting on time, and budgeting medium to long term. All these will surely strengthen Sri Lanka’s capability to manage its debt, reduce risks, and conform to international standards of transparency.
A Commonwealth mission was in Colombo this month to lay the groundwork for implementation. It consisted of senior members of the Commonwealth Debt Management Unit, who worked alongside their Sri Lankan government counterparts in staff planning for training, system installation, and loading the outstanding debt data onto the new system. The Ministry of Finance viewed implementation as crucial for facilitating a smooth transition and enhancing its capacity.
Building resilience through reforms
Software buying is evidence of Sri Lanka’s efforts to recover after it went through one of its worst economic crises in history. The government’s reforms—most notably, its efforts to restructure foreign debt—are always perceived as being top priority in the construction of a sustainable future. With the introduction of new technology like Commonwealth Meridian, Sri Lanka can hope for greater transparency in reporting indebtedness, a higher degree of investor confidence, and a positive outlook for debt servicing in the future.
The reform has also attracted the world’s notice. Sri Lanka’s capacity for managing its creditors and setting a clear course of action has been celebrated across the board as a model for others stuck in the same debt quagmire. Its use of digital technologies for tracking debt is being exported as part of a bold agenda of transitioning into new, data-driven forms of governance in the South.
International adoption of Commonwealth Meridian
Sri Lanka is one of 45 countries already using Commonwealth Meridian for the management of government debt portfolios. The countries share a total figure of approximately USD 4 trillion of debt invested under the system. Universal use by the countries confirms its position as a reliable platform for public debt management among diversified economies.
