News
Harsha accuses govt. of being secretive about debt negotiations with international commercial creditors
By Saman Indrajith
The Samagi Jana Balawegaya (SJB) is not at all satisfied with the furtive manner in which the government is conducting discussions with Sri Lanka’s commercial creditors to restructure 12 billion dollars of debt, SJB MP and Chairman of the Committee on Public Finance (COPF), Dr. Harsha de Silva said.
The SJB MP added that the country’s international commercial creditors account for a large portion of its domestic debt and they have formed a group, i.e. ‘The Ad Hoc Group of Bondholders’ that has procured the services of two powerful consulting firms.
The Group is advised by Rothschild & Co and White & Case LLP as financial and legal advisors, respectively, he said.
Sri Lanka has made some progress with bilateral creditors including China and India, he said.
“China for the first time since it started lending has agreed to accept the same conditions that the other creditors receive. This is a great victory. However, the stumbling block seems to be our dealings with the commercial creditors and I am not sure if we are doing all we can to get a speedy resolution.”
MP de Silva said that early in 2023, the Ad Hoc Group of Bondholders came up with a “Macro-Linked Bond” (MLB) as a way of restructuring the debt. MLB links payouts to the evolution of Sri Lanka’s gross domestic product. They proposed the government the issuance of 10 bonds linked with the country’s macroeconomic health that will mature between 2027 and 2036, he said.
“They have proposed a 20 percent haircut and an interest rate up to 9.5 percent to be paid in cash and in kind.” But if GDP growth is lower than the bondholders expect the interest rates will drop further. The Sri Lankan government said, in October, it was not too keen on this and I don’t blame them.”
In late 2023, White & Case LLP issued a statement on behalf of the Ad Hoc Group of Bondholders. In this statement they said they have repeatedly tried to engage with the Sri Lankan authorities and its advisors in good faith. They say no substantive engagement has taken place between Sri Lanka and its private creditors by December 2023, de Silva said.
“Now it’s mid- March and no one knows what is going on. We have achieved stability, but we have done so by drastically increasing poverty, significant job losses and the closure of small and medium enterprises. Moreover, Sri Lankan workers sacrificed a lot for the government to restructure domestic debt. So people have sacrificed greatly for stability and therefore they need to know what is going on. But the government is secretive and does not tell us anything that is happening with foreign debt restructuring.”
The SJB MP went on to say that Sri Lanka will be able to dispel the moniker of a bankrupt state when it is able to access international capital markets. For this Sri Lanka’s credit rating must improve.
“President Ranil Wickremesinghe says Sri Lanka will shed the moniker of a bankrupt state by April. I think a lot needs to be done before we reach that stage. We are at the bottom of the ratings, and we need to at least get to where the country was before the Gotabaya Rajapaksa administration.”
MP de Silva said that Sri Lanka needs to grow at double digits to escape the current stagnation and that the best way to do it is to explore how the country can benefit from the fast-growing Indian South.
“This will be the fastest growing area in the world in the coming decades. We need to see how we can link with them and benefit.”
News
Navy renders assistance to bring injured fisherman ashore
The Sri Lanka Navy demonstrated its commitment to maritime safety by assisting to bring ashore an injured fisherman and rushing him for urgent medical attention on Thursday (28 May 2026)
The fisherman was aboard a local multiday fishing trawler off the south coast and the Maritime Rescue Coordination Centre (MRCC) Colombo coordinated the retrieval of the fisherman.
Reportedly, the multi-day fishing trawler had departed from the Kudawella Fisheries Harbour on 05th May with 06 fishermen. While engaged in fishing activities approximately 730 nautical miles off the south coast, one of the crew members suffered an injury.
Following a formal request for assistance, through MRCC Colombo, the Merchant Vessel ‘Dong Fang Wei Ye’ sailing in the nearby sea area had been informed to retrieve the patient. In a rapid response, the Navy dispatched a craft attached to the Southern Naval Command to the designated sea area where the Merchant Vessel was stationed to transfer the fisherman.
Upon transferring the injured fisherman from the Merchant Vessel, naval personnel provided essential first aid to the injured person before swiftly bringing him to the Galle Harbour And safely transferred him to the National Hospital, Galle.
News
Applications called to recruit 400 public officers as Digital Champions for the Public Impact Champions Network
As a key component of the Government’s Digital Economy Plan aimed at enhancing the quality and efficiency of the public sector system, an awareness programme for coordinating executive officers of public institutions was held on Wednesday (27) at the Information and Communication Technology Agency of Sri Lanka (ICTA). The programme marked the first step towards establishing the “Public Impact Champions Network” (PIC-NET), an institutional pilot network intended to drive the optimisation of public services through the digitalisation of public institutions.
During the programme, heads of institutions were informed to submit applications from officers currently serving in public institutions who possess the capability and capacity to represent the “Champions Corps” in spearheading digital transformation, in accordance with Circular PS/ADA/Circular/3/2026.
Chairman of the Information and Communication Technology Agency of Sri Lanka and Senior Adviser to the President on the Digital Economy, Dr. Hans Wijayasuriya, stated that the Government aims to increase Sri Lanka’s digitally empowered economy from its current level of 3% to 12% by 2030.
He further explained that the development of the digital economy is a process aimed at improving efficiency, quality and revenue generation through the use of communication technology in economic activities.
Pointing out how the digital economy has expanded in every developed state, Dr Hans Wijayasuriya noted that the slow growth of the digital economy remains a serious challenge faced by Third World countries. However, he stated that India is currently achieving remarkable progress in digital economic development and that elevating Sri Lanka’s digital economy to a prominent level alongside such developments is one of the Government’s principal objectives.
Dr Hans Wijayasuriya also pointed out that this digital economic growth must take place simultaneously across nearly all public institutions. Accordingly, within the next three years, the coordination and management of transactions among public institutions are expected to function in a fully networked manner similar to banking operations.
He further emphasised that the support of both public institutions and the country’s citizens as a whole would be crucial for the successful implementation of this extensive technological transformation across all public institutions over the next few years.
Ranil Peiris of the Department of Information Technology at the University of Sri Jayewardenepura briefed those present on the foundation of the PIC-NET programme and its future plans.
He explained that, in the future, citizens would be able to access services such as applying for passports and renewing licences entirely online from their homes. He further pointed out that this system would eliminate the need for citizens to repeatedly provide the same information.
Representatives of KPMG also presented the future action plan relating to the selection and training of officers.
Representing the Presidential Secretariat, Sameera Wickremasinghe further briefed participants on the mechanism for calling applications.
The necessary guidance and coordination support for this public sector digitalisation programme are being provided with the support of the Presidential Secretariat, the Ministry of Digital Economy, GovTech Sri Lanka and the Asian Development Bank.
(PMD)
Foreign News
Mother-in-law of Indian bride whose death set off media frenzy arrested
India’s top anti-crime agency has arrested the mother-in-law of an Indian woman whose death has sparked conflicting claims of murder and suicide.
Twisha Sharma’s parents and siblings have alleged that she was tortured by her lawyer husband, Samarth Singh, and his mother – retired judge Giribala Singh – over dowry demands and that she was murdered, allegations they have denied.
The 33-year-old model and actor had been married for just five months when she was found dead in her matrimonial home in Madhya Pradesh state’s Bhopal city on 12 May.
On Thursday, the Central Bureau of Investigation (CBI) arrested Giribala Singh after questioning her for several hours.
The Madhya Pradesh High Court had earlier cancelled her anticipatory bail, finding that a trial court had ignored key evidence and witness testimony.
Following Twisha’s death, the police had registered a case of dowry death against the Singhs. Earlier this week, the investigation was taken over by the CBI.
Twisha’s death has made national headlines and has once against brought the issue of dowry deaths into the spotlight. Every year, thousands of women are murdered for bringing in insufficient dowries, even though the practice was banned in 1961.
The case has drawn significant attention because of the family’s prominence. Twisha was a former beauty pageant winner and actor, while her husband and mother-in-law were lawyers.
Twisha’s parents allege that dowry-related harassment began soon after her marriage to Singh. They also claim that when she became pregnant, Singh and his mother accused her of infidelity and forced her to terminate the pregnancy.
The Singhs deny the allegations, saying Twisha had mental health issues and took her own life. They also contend that the decision to terminate the pregnancy was hers.
Singh is currently in police custody. He had reportedly absconded after Twisha’s death and was arrested by police in Jabalpur on 22 May.
Twisha was cremated on Sunday after a second autopsy. Her family had alleged that the first post-mortem was flawed and accused the police of a cover-up, a charge the police denied.
[BBC]
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