Sri Lanka will begin using the Commonwealth Meridian software from next month as part of its economic recovery efforts, marking a significant step in strengthening public debt management following the country’s 2022 default.
The adoption of the system follows recommendations from the International Monetary Fund (IMF) and World Bank, which urged the government to establish a dedicated Public Debt Management Office after the economic crisis forced Sri Lanka to seek IMF assistance. Since then, Colombo has been implementing wide-ranging reforms with support from international partners, focusing on debt restructuring and improved governance in financial management.
At the IMF’s request, the Commonwealth Secretariat has been providing advisory support to Sri Lanka alongside the IMF and World Bank. This includes guidance on the legal framework, governance, and systems required to manage debt effectively. In October 2024, after evaluating several options, the government selected Commonwealth Meridian for its cost-effectiveness, compatibility with existing systems, and its comprehensive debt management features available through Sri Lanka’s membership in the Commonwealth.
Commonwealth Meridian is widely regarded as one of the most advanced debt management tools, enabling governments to record, analyse, and monitor public debt with enhanced accuracy and transparency. Currently, 45 countries use the software to manage combined portfolios valued at around USD 4 trillion.
Earlier this month, a Commonwealth delegation led by Dr Raymond Prasad, Head of the Secretariat’s Debt Management Unit, and systems adviser Mac Banda, visited Colombo to oversee preparations for the rollout. The mission focused on training Ministry of Finance staff and facilitating the migration of data into the new platform.
Treasury Secretary Dr Harshana Suriyapperuma welcomed the initiative, stressing that collaboration with the Commonwealth was essential to ensure a smooth transition. “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,” he said.
Dr Prasad commended Sri Lanka for taking “difficult but necessary decisions” to stabilise its economy. He noted that the country’s resilience in restructuring external debt and pushing through reforms was a valuable example for other nations facing debt distress. Similarly, Dr Ruth Kattumuri, Senior Director at the Commonwealth Secretariat’s Economic Development, Trade and Investment Directorate, reaffirmed the organisation’s commitment to supporting Sri Lanka in partnership with the IMF and World Bank.
The adoption of Commonwealth Meridian represents a crucial step in strengthening Sri Lanka’s institutional capacity for sustainable debt management, signalling progress in the country’s broader recovery strategy after one of the worst economic crises in its history.
