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
Urgent reforms needed to eradicate drug menace, says President
President Anura Kumara Dissanayake has instructed officials to swiftly introduce all necessary reforms, including amendments to existing laws, in order to eliminate the drug menace from the country.
The President issued these instructions while attending the meeting of the “Ratama Ekata” National Steering Council convened on Thursday (07) morning at the Presidential Secretariat to discuss efforts aimed at eradicating the drug menace.
He also directed the relevant authorities to take all necessary steps to expedite the process of destroying seized narcotics as quickly as possible under proper legal procedures, thereby preventing them from re-entering society and to accelerate the process of punishing offenders.
The President emphasised the need to speed up this process in order to build public confidence, as well as the confidence of the teams engaged in operations, noting that the successful implementation of the “Ratama Ekata” national initiative would thereby be strengthened through collective participation.
The progress of anti-narcotics operations carried out under the “Ratama Ekata” national initiative, including raids and arrests, was extensively reviewed at the meeting. Officials pointed out that raids related to narcotics had increased by 80% since the launch of the programme.
Since the launch of the “Ratama Ekata” national operation on 30 October 2025, authorities have seized 5,437.457 kilogrammes of cannabis, 1,936.325 kilogrammes of heroin, 1,991.414 kilogrammes of crystal methamphetamine (“ice”), 271.724 kilogrammes of cocaine, 1,574,895 narcotic pills, and 629,988 illicit cigarettes. A total of 168,460 suspects have also been arrested in connection with these offences.
The current progress of the legal amendments required to eradicate the narcotics menace from the country was reviewed at the meeting, and it was noted that steps had been taken to submit the Rehabilitation (Amendment) Bill No. 54 of 2007 to the Cabinet in due course. Discussions were also held regarding the rehabilitation process, the strategies that could be adopted in that regard, and the measures taken to develop related facilities.
It was further revealed that, at Divisional Secretariat level, 25 families most severely affected by narcotics in each division had been selected for attitude development programmes. The President stressed the importance of implementing all such programmes through local religious centres.
The President also made clear that anti-drug awareness programmes should not merely be limited to conducting awareness campaigns, but should include continuous follow-up to assess whether the message had been properly communicated to society and to monitor progress. He highlighted the importance of maintaining this mechanism continuously with the involvement of religious leaders, including members of the Maha Sangha in the respective areas.
The President also inquired into measures being taken to establish a separate court for narcotics-related cases, expedite the receipt of Government Analyst reports, and accelerate the filing of cases.
He also stressed the urgent need for a rapid programme to expedite legal proceedings and rehabilitation processes concerning inmates imprisoned for narcotics-related offences, in order to ease prison overcrowding.
The Inspector General of Police also briefed the meeting on investigations and the current status relating to Buddhist monks who were recently arrested in connection with narcotics offences.
The President was further briefed on the progress of programmes jointly implemented by the Ministry of Education and the Women and Children’s Bureau to curb organised efforts to draw schoolchildren into narcotics use. He was also informed about community-based programmes planned in conjunction with the International Day Against Drug Abuse and Illicit Trafficking, which falls on 26 June.
Among those present at the meeting were the Anunayaka Theros of the Malwathu and Asgiri Chapters, senior clergy representing several Buddhist Nikayas, Christian priests, Hindu Kurukkals, Muslim religious leaders, senior government officials including Secretary to the President Dr Nandika Sanath Kumanayake, ministry secretaries, senior tri-forces commanders, Inspector General of Police Priyantha Weerasooriya, heads of relevant institutions, senior security officials, and representatives of the “Ratama Ekata” National Steering Council.
[PMD]
Latest News
Warm welcome extended to the President of the Socialist Republic of Vietnam at the Presidential Secretariat
The official welcoming ceremony for the President of the Socialist Republic of Vietnam and General Secretary of the Central Committee of the Communist Party of Vietnam, To Lam, who is on a State visit to Sri Lanka at the invitation of President Anura Kumara Dissanayake, was held this morning (08th May 2026) at the Presidential Secretariat under the patronage of President Dissanayake.
President To Lam is undertaking this State visit with the aim of further strengthening the economic, cultural and social ties between Vietnam and Sri Lanka.
Upon his arrival at the Presidential Secretariat, escorted by the Police Mounted Division, President To Lam was warmly received by President Anura Kumara Dissanayake.
Following the playing of the national anthems of both countries, the official welcoming ceremony for President To Lam formally commenced.
On the occasion, President To Lam was accorded a ceremonial gun salute with full State honours.
Thereafter, President To Lam and President Anura Kumara Dissanayake reviewed the Tri-Forces Guard of Honour, following which the Vietnamese and Sri Lankan delegations were introduced.
The two leaders also posed for official photographs.
Representing the Government of Sri Lanka at the occasion were Minister of Foreign Affairs, Foreign Employment and Tourism Vijitha Herath, Minister of Labour and Deputy Minister of Finance and Planning Dr Anil Jayantha Fernando, Minister of Science and Technology Professor Krishantha Abeysena, Minister of Buddhasasana, Religious and Cultural Affairs Dr Hiniduma Sunil Senevi, Minister of Environment Dr Dhammika Patabendi, Minister of Public Security and Parliamentary Affairs Ananda Wijepala, Secretary to the President Dr Nandika Sanath Kumanayake, Secretary to the Ministry of Defence Air Vice Marshal Sampath Thuyacontha (Retired), Secretary to the Ministry of Foreign Affairs Aruni Ranaraja, along with a number of senior officials from both countries.
(PMD)
Latest News
President of the Socialist Republic of Vietnam arrives in Sri Lanka on State Visit
President To Lam, President of the Socialist Republic of Vietnam, General Secretary of the Central Committee of the Communist Party of Vietnam, accompanied by a delegation of 209 members arrived in Sri Lanka on Thursday (07) night on a state visit.
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