DILi, 22 April 2026 (TATOLI) – Timor-Leste’s government has approved a draft law proposal on the amendment to the country’s public debt law, aiming to broaden financing options and strengthen fiscal sustainability as the country prepares for declining petroleum revenues.
The draft amendment to Law No. 13/2011 of September 28 was presented by Finance Minister Santina José Rodrigues F. Viegas Cardoso.
“The proposal expands the scope of public debt issuance, removing the restriction that previously limited it exclusively to financing strategic infrastructure,” said in a statement.
The amendment enabled the use of instruments such as Treasury securities to finance general government expenditure. “This amendment aims to align the national public debt regime with practices adopted under general terms in most countries and to establish conditions for more sustainable management of public finances in the medium and long term,” added the statement.
The government said the initiative aims to the Government aims to strengthen fiscal sustainability, prepare the country for the gradual decline in revenues from the Petroleum Fund, and ensure greater stability in funding for essential public policies.
This draft Law Proposal had already been discussed at the Council of Ministers meeting on January 27th, 2026. However, following adjustments made during the final drafting stage—specifically to clarify the rules governing the issuance and management of Treasury securities and bills—it became necessary to review and deliberate on it once again.
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