Excluding banking sector in DDO will lead to lower interest rates: CA Sri Lanka

• CA Sri Lanka commended the development of a DDO framework to successfully achieve the desired gross financing targets

The Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) today said the decision to exclude the country’s banking sector from the Domestic Debt Optimisation (DDO) plan will result in lower interest rates, which will help resuscitate the economy.   

“CA Sri Lanka is also hopeful that the exclusion of the banking sector from the domestic debt optimization process will soon lead to lower interest rates, the benefits of which will trickle down to SMEs, the business sector, and individuals, including professionals.   

Further, we are optimistic that this will result in private sector credit growth, which will ultimately help revive the economy,” the national body of Sri Lanka’s accountants said in a statement.   

CA Sri Lanka also commended the development of a DDO framework to successfully achieve the desired gross financing targets while minimizing adverse effects on the banking sector and superannuation fund holders.   
Considering this critical juncture, CA Sri Lanka appealed to all important stakeholders, including all political parties, corporates, professional organisations, and trade unions, to support the DDO framework to improve sovereign debt sustainability and support the efforts to revive the economy.