News
‘DDO will cause loss of over Rs. 97 bn to banking sector’
‘CBSL employees receiving higher interest rate of 29 percent’
Pivithuru Hela Urumaya (PHU) leader and dissident SLPP MP Udaya Gammanpila yesterday (04) said that though the government insisted that its Domestic Debt Optimisation (DDO) programme would have no impact on the banking sector, banks could lose as much as Rs 97 bn.
Addressing the media at the PHU office at Pita Kotte, Attorney-at-Law Gammanpila said that examination of the Cabinet Memorandum on DDO, along with the Central Bank’s presentation to the Cabinet, had revealed the true situation.
The former Power and Energy Minister said: “According to Page 3 of the Cabinet Memorandum, dated 28.06.2023, presented by Minister of Finance Ranil Wickremesinghe, the outstanding value of Sri Lanka Development Bonds is $886 million, or Rs 272 billion. According to Page 29 of the Presentation of the Central Bank, there will be a capital reduction of 30% of the SLDB, which is known as haircut. Accordingly, there will be a haircut of Rs 81.6 billion.
85% of the SLDBs are held by domestic banks. Hence, the loss to be incurred to the banks because of the haircut is Rs 69 billion. Further, a 30% haircut is applicable to FCBU loans amounting to $323 million, or Rs 92 billion. 30% of this amount is Rs 28 billion. Accordingly, the total loss from both Bonds and FCBU loans are Rs 97 billion. Additionally, there will be an interest rate reduction of approximately 35%. We have not calculated the loss associated with interest rate reduction. Hence, definitely, there will be an adverse impact on commercial banks’ liquidity and profitability from the domestic debt optimisation process.”
The PHU leader questioned how the EPF had given special status to Central Bank employees, much to the disappointment of other members of the country’s largest social security scheme. Declaring that the responsibility of the Central Bank is to invest EPF funds wisely and provide sufficient and equal returns to the members, MP Gammanpila said that in 2022 Central Bank employees were paid 29 percent interest whereas others received nine percent. How come the EPF managed by the Central Bank treated beneficiaries differently, the MP asked.
The PHU leader demanded that the Central Bank employees’ EPF be merged with the main body and administered as one unit.
The Cabinet of Ministers approved the resolution furnished by the Minister of Transport, Highways and Urban Development to accept 08 used low floorboard buses offered as a grant by the Government of Japan.
News
Payment of the financial subsidy for fertilizer to farmers cultivating paddy lands for the Yala season 2026.
While approval has been granted at the Cabinet meeting held on 18.08.2025 to pay the financial subsidy for fertilizer to farmers cultivating paddy lands for the Maha season 2025/26, the programme is planned to be continued for the Yala season 2026 as well.
Accordingly, the Cabinet of Ministers approved the resolution furnished by the Minister of Agriculture, Livestock, Lands and Irrigation to pay a financial subsidy of Rupees 25,000/- per hectare and for a maximum of 02 hectares per farmer for paddy cultivation and to pay Rupees 15,000/- per hectare for field crops cultivated in paddy lands[maximum of 02 hectares per farmer]
News
Ministerial Committee appointed to submit recommendations on proposed program to mitigate loss of crops to wild animals
The rural agricultural livelihood and food security have been severely impacted due to the damage caused by wild animals such as elephants, wild boars, monkeys, toque macaque, squirrels, and peacocks roaming around human habitats and cultivated lands.
Animal-human conflicts and property destruction have mostly been reported around these areas, and serious social and economic issues have also arisen.
Therefore, the Ministry of Agriculture, Livestock, Land, and Irrigation has prepared a comprehensive program based on the opinions of all stakeholders, including the public, university community, farmers’ organizations, environmentalists, non-governmental organizations which work for environmental issues, the Department of Agriculture, the Department of Agrarian Development, and other relevant organizations.
Taking into consideration the report submitted by the Minister of Agriculture, Livestock, Land, and Irrigation, the Cabinet of Ministers has decided to appoint a ministerial committee with the participation of other relevant ministers, chaired by the Minister of Agriculture, Livestock, Land, and Irrigation, to submit appropriate recommendations on how the aforementioned program should be implemented by further reviewing the proposals included in the said program and incorporating new proposals.
Cabinet nod to accept Japanese government grant of 08 used low floorboard buses
Payment of the financial subsidy for fertilizer to farmers cultivating paddy lands for the Yala season 2026.
Ministerial Committee appointed to submit recommendations on proposed program to mitigate loss of crops to wild animals
New Zealand elect to bowl first at Eden Gardens
Cabinet approves import of Maize to meet shortfall
Cabinet nod for the removal of Cess tax imposed on imported good
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