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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
National Communication Programme for Child Health Promotion (SBCC) has been launched. – PM
Prime Minister Dr. Harini Amarasuriya stated that the Government has commenced necessary measures to maintain preschool education under a framework, align preschool education with a unified curriculum, conduct teacher training in a systematic manner, and ensure quality standards.
The Prime Minister made these remarks on Saturday (10) at the Temple Trees, participating in the launch of the National Communication Programme for Child Health Promotion, aimed at promoting social and behavioural change (SBCC) among early childhood children. The programme is jointly organized by the Health Promotion Bureau, the Ministry of Women and Child Affairs, the Ministry of Education, Higher Education and Vocational Education, UNICEF, and the Clean Sri Lanka Programme.
Addressing at the event, Prime Minister Dr. Harini Amarasuriya stated:
“Early Childhood Development (ECD) has a major impact on a country’s human development and future progress. It is a widely accepted fact that a child’s future depends largely on early childhood development. Many aspects essential for a child’s growth occur within the first five years of life. The experiences, care, and love a child receives during this period are decisive.
The social integration, relationships, and environmental influences experienced in early childhood form the foundation for shaping an individual as an adult. Early childhood development influences life to an extent that it becomes difficult to change when it grows into adulthood.
The responses of adults to children’s actions, the way they interact with them, and the care they provide are extremely important. Therefore, early childhood development should never be viewed as the sole responsibility of parents. It is a collective responsibility of all citizens.
No child can be raised into a good citizen by parents alone. In all our lives, beyond our parents, there have been many who influenced us, showed us love, and provided care. It is due to the collective support of all these individuals that we have reached where we are today. The government views child care as a social responsibility. Supporting a child, providing care, ensuring protection, education, and health facilities are social responsibilities. In this regard, the intervention of the Clean Sri Lanka Programme to communicate these values to the public is important.
The role of the preschool teachers plays a special and vital role for children. The love, care, attentive listening, and responses children receive during this stage are decisive for their development. Teachers carry out a crucial intervention in the lives of children. An education policy on early childhood development has been formulated, with UNICEF providing technical assistance. Steps are being taken to operate preschool education under a single framework, align it with a unified curriculum, systematically conduct teacher training, and ensure quality standards.
Recognising early childhood development as a specialised area within education, the Prime Minister affirmed that the relevant interventions will be made accordingly.
Addressing the event, Minister of Women and Child Affairs, Ms. Saroja Paulraj stated that the Ministry has identified the standardisation and development of early childhood development as a primary goal for the year 2026. She noted that children who leave the warmth of their mother’s embrace and father’s shoulder and come to preschool teachers expecting the same love and care from their teachers. Conveying that warmth through words and expressions is a responsibility entrusted to teachers. The love and safe environment children receive shape their ability to love the environment and respect others.
Minister of Health and Mass Media, Nalinda Jayatissa, also addressed the gathering, stating that the goal of the government is to build a beautiful future generation capable of leading the country, free from the various hardships and challenges faced today.
He emphasised that creating a healthy population is a challenge, particularly in preventing non-communicable diseases. Children aged three to five today will become a generation aged 18 to 20 by 2040. Continuous and comprehensive programmes such as this are essential to protect that generation from non-communicable diseases. In some instances, interventions are required even during the preconception and prenatal stages.
He further highlighted that preschool and early childhood development centre teachers shoulder a tremendous responsibility in driving a major transformation in the country’s future.
The event was attended by the Governor of the Sabaragamuwa Province, Ms. Champa Janaki Rajarathne; the Governor of the Uva Province, Attorney-at-Law Kapila Jayasekara; the Governor of the North Central Province, Wasantha Jinadasa; the Governor of the North Western Province, Thissa Kumarsiri Warnasuriya; the Deputy Minister of Women and Child Affairs, Dr. Namal Sudarshana; the Member of Parliament, Dr. Najith Indika; the Representative of the United Nations Children’s Fund (UNICEF) in Sri Lanka, Ms. Emma Brigham; the Secretary to the President, Dr. Nandika Sanath Kumanayake; the Senior Additional Secretary to the President (Finance and Economic Affairs), Mr. Russell Aponsu; the Additional Secretary to the President (Clean Sri Lanka), S. P. C. Sugishwara; Secretaries to Ministries; Provincial Chief Secretaries; the Commanders of the Tri-Forces; officials of subject-related ministries; provincial council officials; preschool teachers; preschool children; and parents.

(Prime Minister’s Media Division)
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Level I landslide early warnings issued to the Districts of Badulla, Kandy, Matale and Nuwara-Eliya extended
The Landslide Early Warning Centre of the National Building Research Organization (NBRO) has extended the landslide early warnings issued to the Districts of Badulla, Kandy, Matale and Nuwara-Eliya till 1600hrs today (11).
Accordingly, the LEVEL I YELLOW early warnings issued to the Divisional Secetaries Divisions and surrounding areas of Lunugala, Meegahakiwula,Welimada, Kandaketiya, Hali_Ela, Badulla, Uva Paranagama in the Badulla district, Minipe and Ududumbara in the Kandy district, Wilgamuwa, Ukuwela, Ambanganga Korale, Rattota and Laggala_Pallegam in the Matale district, and Nildandahinna, Walapane, Mathurata and Hanguranketha in the Nuwara-Eliya district will be in force until 1600hrs today (11)
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Experts: NPP education reforms unsuitable for SL
Proposed education reforms have drawn sharp criticism from education professionals, teacher unions and student organisations, who warned on Thursday that the changes risk undermining child safety, widening inequality and imposing unaffordable costs on parents.
Addressing a press conference in Colombo, Dr Ayomi Irugalbandara of the Faculty of Education at the Open University of Sri Lanka said the proposed reforms appeared to be largely modelled on foreign education systems without adequate consideration of local realities.
She took particular issue with proposals to integrate social media use into the school curriculum, noting that several developed countries have moved in the opposite direction by preventing children under the age of 15 from accessing social media platforms.
“Most of these modules are not appropriate for this country,” Dr Irugalbandara said. “We warn parents that these reforms place children at risk.”
Concerns were also raised over digital content linked to the revised curriculum. Inter-University Students’ Federation Convener Madushan Chandrajith said the Grade Six Information and Communication Technology (ICT) module included QR codes that directed students to a controversial YouTube channel.
“Who will take responsibility for children accessing such content?” he asked, calling for clear accountability mechanisms for material linked through digital platforms used in schools.
Secretary of the Workers’ Struggle Centre, Duminda Nagamuwa, criticised the government’s approach to the reform process, comparing it to the fertiliser policy introduced under former President Gotabaya Rajapaksa. He alleged that the authorities were pushing ahead with education reforms despite opposition from academics, teachers and other stakeholders.
Nagamuwa also highlighted the economic burden on families, noting that Sri Lanka’s poverty rate had increased from 12.5 percent to 25 percent. He questioned how parents were expected to afford smartphones or tablet computers required for students to access QR code-linked educational content.
“The government is asking parents to bear costs they simply cannot afford,” he said.
Ceylon Teachers’ Union General Secretary Joseph Stalin said schools had already begun collecting money from parents in anticipation of the reforms, including funds to purchase smart boards.
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