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Govt. ponders domestic debt optimisation operation
Sri Lankan authorities are exploring the possibility of domestic debt optimisation (DDO) operations aimed at liquidity relief while preserving financial stability to avoid further eroding of Sri Lanka’s repayment capacity, the country’s Central Bank said issuing a press release on Thursday night.
The Central bank said the DDO would be conducted on a voluntary basis and be based on its consultations with major T-Bonds holders.
The press release follows an investor presentation that the Central bank officials did in order to explain the current macroeconomic situation in Sri Lanka, and outline the key pillars and objectives of the IMF program as well as the next steps with regard to the engagement with creditors.
Given below is the press release in full: “On 20th March 2023, the IMF Board approved Sri Lanka’s IMF program, unlocking up to $7bn in funding from the IMF and other IFIs. The IMF program provides a clear roadmap in terms of policy implementation and will stabilize the economy of Sri Lanka and allow the country to regain its growth potential and address its economic vulnerabilities
“Today, we held an investor presentation in order to explain the current macroeconomic situation in Sri Lanka, and outline the key pillars and objectives of the IMF program as well as the next steps with regard to the engagement with creditors.
“The Sri Lankan Government has embarked on an ambitious reform agenda, and we have successfully achieved all prior actions required to unlock the IMF financing. As per the IMF program, we are fully committed to achieving fiscal consolidation and implementing fiscal structural reforms; restoring public debt sustainability; restoring price stability and rebuilding external buffers; safeguarding financial system stability; and reducing corruption vulnerabilities and further introducing growth-enhancing reforms. Sri Lankan people are the Government’s priority, and as part of the IMF program, we aim to enhance the existing social safety nets to protect the most vulnerable.
“As a result, Sri Lanka’s economy has already shown some encouraging stabilization signs, with year-on-year inflation slowing down and earnings from tourism rebounding to more standard levels. We will continue to implement our reform agenda in order to support Sri Lanka’s economic recovery and successfully complete the IMF program.
“Despite the ambitious fiscal consolidation efforts, Sri Lanka’s public debt trajectory is set to remain unsustainable in the absence of a comprehensive debt treatment. Sri Lanka is also facing a significant external financing gap over the IMF program period. This financing gap will have to be covered through new external funding and external debt service relief. The Authorities are also exploring options for a domestic debt optimization (DDO) operation aimed at liquidity relief while preserving financial stability to avoid further eroding of Sri Lanka’s repayment capacity. It is envisaged that this DDO will be conducted on a voluntary basis and be based on our consultations with major T-Bonds holders.
As we move ahead, we are looking forward to accelerating and intensifying engagement with all our creditors in a transparent way, in good faith, and we are hoping to reach debt treatment agreements that are consistent with the IMF debt sustainability analysis and with the comparability of treatment principle.”
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Level III landslide warnings issued to the Districts of Kandy, Kegalle, Kurunegala and Matale extended
The Level III RED landslide early warnings issued to the Districts of Kandy, Kegalle, Kurunegala and Matale by the Landslide Early Warning Center of the National Building Research Organisation [NBRO] have been extended until 1600hrs tomorrow [10th December 2025].
Accordingly,
The LEVEL III RED landslide early warnings issued to the Divisional Secretaries Division and surrounding areas of Panvila, Udapalatha, Minipe, Poojapitiya, Gangawata Korale, Thumpane, Doluwa, Pathadumbara, Ganga Ihala Korale, Harispattuwa, Akurana, Ududumbara, Pathahewaheta, Hatharaliyadda, Yatinuwara, Deltota, Medadumbara, Udunuwara, Kundasale and Pasbage Korale in the Kandy district, Yatiyanthota, Rambukkana, Aranayaka, Warakapola, Galigamuwa, Mawanella and Bulathkohupitiya in the Kegalle district, Mallawapitiya, Rideegama and Mawathagama in the Kurunegala district, and Ukuwela, Pallepola, Rattota, Matale, Laggala Pallegama, Yatawatta, Naula, Ambanganga Korale and Wilgamuwa in the Matale district have been extended.
LEVEL II AMBER landslide early warnings issued to the Divisional Secretaries Division and surrounding areas of Uva Paranagama, Hali_Ela, Meegahakivula, Badulla, Kandeketiya, Bandarawela, Soranathota, Ella, Haputhale, Lunugala, Welimada, Haldummulla and Passara in the Badulla district, Ruwanwella, Dehiowita, Kegalle and Deraniyagala in the Kegalle district, Alawwa and Polgahawela in the Kurunegala district and Nuwara Eliya, Nildandahinna, Thalawakele, Kothmale West, Mathurata, Ambagamuwa Korale, Hanguranketha, Walapane, Kothmale East and Norwood in the Nuwara Eliya district, and Kahawaththa, Kolonna and Godakawela in the Ratnapura district have also been extended.
LEVEL I YELLOW landslide early warnings issued to the Divisional Secretaries Divisions and surrounding areas of Mirigama, Divulapitiya and Attanagalla in the Gampaha district, Narammala in the Kurunegala district, and Kiriella, Balangoda, Kuruwita, Openayake, Nivithigala, Kaltota, Pelmadulla, Kalawana, Eheliyagoda, Elapatha, Ayagama, Imbulpe and Ratnapura in the Ratnapura district.
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G.C.E. Advanced Level Examination will resume on 12th January 2026
The Ministry of Education has announced that the .postponed subjects of the G.C.E. Advanced Level Examination will be conducted from 12 – 20 January 2026,
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The aim of the Government is to ensure a safe life for every citizen -President
President Anura Kumara Dissanayake stressed that the aim of the Government is to ensure a safe life for every citizen and that it is everyone’s responsibility to act with proper supervision during the resettlement of the people.
The President instructed the relevant sectors to complete all necessary repairs before 31 December by utilising the allocations given by the Government for infrastructure development for this year and not to return any part of those allocations under any circumstances.
The President said that there is no shortage of funds required for relief to the people and for restoring normal life and that what is necessary in this emergency situation is for all institutions to fulfil their responsibilities through proper coordination without limitations.
President Anura Kumara Dissanayake made these remarks while participating on Monday (08) afternoon at the District Coordinating Committee meeting held at the Uva Province Library Auditoriam to review the programme being carried out to restore normalcy in the lives of the affected people in the Badulla District and to develop essential infrastructure. Due to the disaster situation, 64,140 individuals belonging to 19,133 families in the Badulla District have been affected. A total of 418 houses have been completely damaged and 7,703 houses have been partially damaged.
The President inquired separately into the programmes being carried out to restore essential infrastructure such as repairing damaged roads, electricity, water supply, communication, irrigation, restarting agriculture, the livestock sector, inland fisheries and restoring the health and education sectors, among others.
The President pointed out the need to carry out all road repairs simultaneously without dividing them as roads under the Road Development Authority, provincial roads, or local authority roads. He informed officials that if the funds allocated for this purpose are insufficient, they should request the required additional allocations.
The President also instructed that an estimate be prepared and submitted for all roads in the district requiring permanent repairs and noted that funds can be provided to commence this work by January.
Officials stated that, 90% of the district’s damaged electricity supply due to the disaster situation has already been restored and the remaining supply is also being restored swiftly. They further pointed out that steps have been taken to ensure the district’s water supply is provided as required.
The reopening of schools was also discussed and the President instructed that the Government’s allowance of Rs. 15,000 granted to affected schoolchildren be paid promptly through the intervention of Divisional Secretaries.
Due to the disaster situation, 6,711 acres of agricultural land in the Badulla District have been damaged. The President instructed that the relevant farmers and the extent of damaged land be identified, compensation be provided swiftly and they be directed back into cultivation.
He further instructed officials of the Irrigation Department to provide water to agricultural lands at least temporarily, so that the farmers will be able to harvest the Maha season. The President stated that the allowance of Rs. 25,000 provided for the cleansing and restoration of damaged temples and religious sites will be granted through the Department of Cultural Affairs and that a Cabinet decision regarding this matter is expected this week.
Lengthy discussions were held on providing compensation to destroyed and damaged houses and on the resettlement of the affected people. The President also highlighted the need to implement programmes aimed at improving the mental health of people living in camps.
President Dissanayake expressed his gratitude to the Tri-forces, Government officials and the public who are working with immense dedication in all these activities.
Participating in this occasion were the Chairman of the Badulla District Coordinating Committee and Minister of Agriculture and Rural Infrastructure, Samantha Vidyaratne; Chairman of the Badulla District Coordinating Committee and Governor of Uva Province, Attorney-at-Law Kapila Jayasekara; Deputy Minister of Trade, Commerce and Food Security, R. M. Jayawardena; Deputy Minister of Power and Energy, Arkam Iliyas; Deputy Minister of Youth Affairs, H. M. Dinindu Sampath Hennayake; Deputy Minister of Tourism, Professor Ruwan Ranasinghe; Members of Parliament Sarath Kumara, Ravindra Bandara, Sudath Balagalla, Kittnan Selvaraj, Ambika Samuel, Ajantha Gammaddege and Chamara Sampath Dasanayake, along with other ruling and opposition MPs; Chief Secretary of Uva Province, Ms. Anusha Gokula and representatives of Provincial Councils; Secretary to the Ministry of Finance, Dr. Harshana Suriyapperuma, together with senior officials of the Ministry of Finance; Badulla District Secretary Panduka Sri Prabath Abeywardena and other Government officials of the district, as well as representatives of the security services
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