COLOMBO, July 30 -- The Parliamentary Committee on Public Finance (COPF) has raised concerns over the impact of rising government borrowing, interest rate volatility and the depreciation of the Sri Lankan rupee on the country's debt servicing costs, stressing the need for closer coordination between the Central Bank of Sri Lanka and the Ministry of Finance.

The concerns were raised during a recent meeting of the Committee, chaired by MP Harsha de Silva, to examine the first Annual Report (2025) of the Public Debt Management Office (PDMO), established under Section 33 of the Public Finance Management Act, No. 44 of 2024.

Committee members focused on the increase in government borrowing during 2025 and its implications for debt sustainabi...