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.
Police urge motorists who intend to use the Ella – Wellawaya Road to use alternative roads as there is a severe vehicle congestion due to inclement weather condition.
The oil anointing ceremony for the Sinhala and Tamil New Year was held on April 16 at the historic Rajamaha Viharaya in Kolonnawa, with the participation of Prime Minister Dr. Harini Amarasuriya.
Following the chanting of pirith, the oil anointing ritual was carried out at the auspicious time of 9:04 a.m., by the Chief Incumbent of the temple, Venerable Kolonnawa Dhammika Thero.
Speaking after the ceremony the Prime Minister said that:
“The Sinhala and Tamil New Year is one of the most important festivities in our country. It is a celebration with our families, reflecting our traditions and customs while strengthening the ties.
This festival leads the path for renewing unity, love, and bonds stronger. These values enrich a country. Development of a country is not limited by one-dimensional; a true development includes spirituality, relationships, and connections. The reason why we uphold these customs in such ceremonies is to remind ourselves of the significance and to pass on their value to future generations.
Therefore, today marks a significant day. Throughout this week, we came together and engaged in various activities. Followed by, the next event will mark the leaving for employment at the auspicious time and we should start working collectively to rebuild the country.
I wish everyone a New Year that is prosperous, peaceful, joyful, full of strengthened relationships, and most importantly, safe for all.”
The ceremony was graced by the presence of the Maha Sangha, and attended by the Deputy Minister of Youth Affairs Eranga Gunasekara, Divisional Secretary to Kolonnawa Priyanath Perera, Municipal Secretary Nelum Kumari Gamage, and the residents of the area.
[Prime Minister’s Media Division]
Latest News
Heat Index at ‘Caution Level’ at some places in Northern, North-central, North-western, Western, Southern and Eastern provinces and in Rathnapura and Monaragala districts today [16]
Warm Weather Advisory Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology for 16 April 2025
The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in Northern, North-central, North-western, Western, Southern and Eastern provinces and in Rathnapura and Monaragala districts.
The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.
Effect of the heat index on human body is mentioned in the table below and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.
ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated. Dress: Wear lightweight and white or light-colored clothing.
Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.
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