Apart from funding through the treasury cash flows or borrowed funds through CBSL, the government offers a guarantee to banks to lend the money to state-own entities. The largest exposure carried by BOC amounting to LKR 895Bn, followed by PB LKR 783Bn, and NSB 204Bn.
The government’s public debt includes a government guarantee, which may be subject to the domestic debt restructuring process. Some of the countries that opted for the domestic debt restructuring process, had restructured the Government guarantee debt as well.