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Debt restructuring: Harsha calls for cautious approach, stresses fair treatment for all
Calling for a cautious approach towards domestic debt restructuring, SJB MP Dr. Harsha de Silva has stressed the need to ensure the stability of Sri Lanka’s financial sector and prevent any unfair treatment of depositors, particularly the EPF and ETF. The Opposition has opposed any haircut on domestic debt under any circumstances, MP de Silva has said, referring to a haircut as a ‘Do Not Cross’ line.
The SJB’s stand is in line with their blueprint on economic, published last year and revised earlier this year, the economist has said.
The former UNP State Minister dealt with debt restructuring at a media briefing held at the Opposition Leader’s Office this week.
The Colombo District MP said that Opposition parties, while cautious about the potential consequences, would discuss the need for careful domestic debt optimization if deemed absolutely necessary. The MP said: “The government plan is set to be presented to the Cabinet today (28) and will subsequently undergo deliberation in the Committee on Public Finance over Thursday and Friday. Pending agreement at the Party Leaders’ meetings, a special parliamentary session is planned for the weekend of 1st and 2nd July to debate the plan.”
The top SJB spokesman said while his party was totally opposed to any plans that include a haircut on domestic debt, they remain committed to protecting the interests of the nation. The MP emphasized the importance of fair treatment of pension funds and depositors without causing further harm to the economy. “The Opposition’s primary focus is on safeguarding the country’s interests and ensuring that any necessary measures are implemented in a responsible and cautious manner,” MP de Silva said.
Dr de Silva said: “Sri Lanka’s economy is contracting daily, regressing to the GDP per capita levels in 2013. To achieve the status of a developed country, as outlined by the President, Sri Lanka needs to sustain a minimum growth rate of 6.5% annually from 2027 to 2048. Merely maintaining the current pace or IMF projected 3% by 2027 will not be sufficient to propel the nation forward. Additionally, the country faces challenges such as reduced demand in global markets and the displacement of low-skilled labour due to technological advancements and automation.”
The primary advantage of pursuing a domestic debt optimization programme lies in the reduction of substantially increased interest rates, allowing the economy to regain stability and promote growth. MP Harsha emphasized that the focus should be on optimizing domestic debt rather than restructuring it entirely. The government has indicated that only treasury bonds will be subject to optimization, not treasury bills. Thus, as treasury bonds carry higher risk, they demand a risk premium. Lowering the risk through the debt optimization program will subsequently lead to a decrease in interest rates, benefiting small and medium-sized enterprises (SMEs) and other businesses, revitalizing the economy. This urgency underscores the importance of implementing the domestic debt optimization plan as soon as possible.
MP Harsha de Silva and the opposition parties are prepared to draft laws and regulations in Parliament to safeguard the interests of the people and creditors. This commitment aims to ensure that any domestic debt restructuring measures are conducted in a manner that prioritizes the well-being of all stakeholders involved. They emphasize the need for transparency and accountability throughout the process.
One of the potential positive outcomes of an effective domestic debt optimization programme would be the revival of the Micro, Small, and Medium Enterprises (MSME) sector. MP Harsha highlighted the importance of providing support and opportunities for these businesses, which are currently facing significant challenges. A well-executed debt optimization programme could help uplift the MSME sector from its current state and foster growth and economic recovery.
As Sri Lanka grapples with the pressing issue of domestic debt, MP Harsha and the opposition parties stress the importance of careful consideration and a cautious approach. They stand united in their determination to protect the interests of the nation while exploring viable strategies for domestic debt optimization. By striking the right balance between economic stability, fair treatment of depositors, and sustainable growth, Sri Lanka can overcome its challenges and pave the way for a brighter future.
News
Our objective is to ensure that the Commission to Investigate Allegations of Bribery or Corruption operates as an independent institution, free from any external influence – PM
Prime Minister Dr. Harini Amarasuriya stated that the government’s objective is to ensure the environment for the Commission to Investigate Allegations of Bribery or Corruption [CIABOC] to function as an independent body, without influence from anyone, including Members of Parliament and Ministers.
The Prime Minister made these remarks while participating in the debate on the interim resolution concerning the determination of salaries and service conditions of the officers and employees of the Commission under the Anti-Corruption Act.
The Prime Minister stated:
“Honourable Speaker, I consider the proposal presented today on determining the remuneration and service conditions of the officers and employees of the Commission to Investigate Allegations of Bribery or Corruption to be highly important. Although the Anti-Corruption Act was passed in 2023, we only began to truly feel the presence of an active Commission from 2025.
Since then, we have had to experience a number of challenges in operationalizing the Commission. In particular, there were several obstacles, including limitations in recruiting officers, which hindered the Commission from functioning as required. It was necessary to establish several practical conditions, such as granting the Commission the freedom to determine allowances for its staff, to formulate the rules and regulations required for its operations, to recruit personnel, and to submit budget estimates relevant to its annual plans. At the time the new Director General assumed duties, there were over 4,000 investigation files within the Commission where investigations had been completed but cases had not yet been filed. Moreover, there were only about 31 legal officers.
Follow the adoption of this proposal, the Commission will be granted the authority to recruit officers, determine necessary allowances, and make independent decisions regarding financial matters. This will enable the Commission to effectively fulfill its intended mandate. This proposal plays a significant role in building a new political culture in our country, one that is anti-corruption and committed to a transparent public service that is free from bribery”.
Further commenting, the Prime Minister also addressed the country’s response to the ongoing global energy crisis.
“In the current global context, our economy and energy sector are facing multiple challenges. These conditions are constantly evolving and difficult to predict. However, it is our responsibility as a government to recognize these changes and manage their impact on our economy.
Following that, the Cabinet has decided to appoint four special committees. Accordingly, one committee will focus on ensuring the uninterrupted provision of essential services to the public; while another will make decisions on maintaining public services through energy management within the public sector; a third will work with the Procurement Commission to identify new methods of energy procurement in addition to existing mechanisms; and a fourth will examine the social impacts arising from this situation, including its effects on vulnerable groups, and recommend fair solutions, relief measures, and welfare services.
This is a situation that we, as a country, must face collectively. The public service, the private sector, the political leadership regardless of party differences and the people of our country must come together to overcome this, just as we have faced previous challenges. We are confident that, we will be able to successfully face this situation through proper leadership and management, and by making timely decisions.
[Prime Minister’s Media Division]
Latest News
Heat Index at ‘Caution Level’ in the Western, Sabaragamuwa, North-central, Southern and North-western provinces and in Monaragala, Mannar, Vavuniya and Mullaitivu districts
Warm Weather Advisory Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology at 3.30 p.m. on 18 March 2026, valid for 19 March 2026
The general public are cautioned that the Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Western, Sabaragamuwa, North-central, Southern and North-western provinces and in Monaragala, Mannar, Vavuniya and Mullaitivu 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 above table 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.
News
Pay hike demand: CEB workers climb down from 40 % to 15–20%
A salary increase in the range of 15 to 20 percent is currently under discussion within the Ceylon Electricity Board (CEB), though no official decision has yet been taken, The Island reliably learns.
A senior electrical engineer who is is privy to ongoing salary negotiations, speaking on condition of anonymity, said the proposal had been put forward as a reasonable and necessary measure, rather than a rigid demand, in light of the prolonged delay in salary revisions. Earlier they have been asking for a staggering 40% salary increase.
“We are not insisting on this as a primary demand or condition. What we are requesting is for the authorities to seriously consider the possibility of granting an increase,” he said.
He emphasised that CEB employees had not received any salary increment since 2024 due to the ongoing reform and restructuring process, leaving staff to cope with rising living costs without adjustment.
“Under normal circumstances, the next salary revision would only be due in January 2027. That creates a significant and unfair gap. This proposal is, therefore, a justified attempt to secure at least a reasonable percentage in the interim,” he said.
The engineer warned that continued inaction could have serious implications for staff morale and operational efficiency at a time when the power sector is undergoing critical reforms.
Sources said that while internal discussions have pointed towards a 15 to 20 percent increase, the matter has not yet been formally taken up at policy level.
However, pressure is mounting on authorities to reach a timely and equitable decision, as frustration grows among employees over the absence of salary adjustments for nearly three years.
By Ifham Nizam
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