News
T-Bill dealers make a killing while bank depositors earn a pittance
by Sanath Nanyakkare
Primary dealers, including banks and other financial institutions that lend to the government through lending instruments, such as short-term Treasury Bills, stand to make a surplus profit of about 5.70% which is one of the highest in the history of Sri Lanka, The Island learns.
Surplus profit is made when these primary dealers profit from the prevailing interest pricing errors in the bank deposit rates and in the government securities market.
They invest in more liquid Treasury Bills which bring them an interest rate of 12.92% in just three months whereas an ordinary bank depositor earns an interest between 10-12% per annum.
This indicates a distortion in the money saving market especially against an inflation rate of 18%, analysts say.
Moreover, for the first time after more than five years, CBSL rejected all bids received at T-bond auction held on 29th March 2022 because higher interest rates were expected by market participants to compensate for galloping inflation and higher financing requirement of the government which normal depositors can never do.
Thus undersubscribed bill and bond auctions have increased Central Bank holdings of government securities to Rs. 1.7 trillion, data from the Public Debt Department reveals.
Sri Lanka recorded one of its highest inflation of 18.7% in March 2022 relative to 15.1% in February 2022 causing an alarm among the consumers in the country. Going forward, inflation is expected to remain high due to higher commodity prices and energy costs.
“Although lending rates have adjusted upwards, the adjustment in bank deposit interest rates remains sluggish, which has been inadequate to attract deposits into the banking system,” they said.
“The new Finance Minister will have to further hike interest rates at the next Monetary Policy Meeting to encourage banks and financial institutions to make the required adjustments to deposit rates in order to promote savings and to be fair by ordinary depositors,” they said.
News
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.
News
Sajith: Ashoka Chakra replaces Dharmachakra in Buddhism textbook
Opposition and SJB Leader Sajith Premadasa on Friday told Parliament that the Buddhism textbook contained a “serious error,” citing the use of the Ashoka Chakra instead of the Dharmachakra.
He said the Dharmachakra depicted in the book differs from the one featured in the state symbol and called on the Education Minister to correct the mistake.
Responding, Education Minister and Prime Minister Harini Amarasuriya said the Dharmachakra used in the textbook had been approved by the Ministry of Buddhist Affairs. She added that the advisory board on Buddhism had also endorsed it.
The Premier further noted that during her recent visit, Mahanayake Theras confirmed that the Dharmachakra in the textbook was the officially approved version.
News
Kelaniya Duruthu Perahera dazzles crowds with tradition and splendour
The Annual Kelaniya Duruthu Perahera at the historic Kelaniya Raja Maha Viharaya lit up the streets once again, concluding on Saturday night after three days of colourful pageantry.
First held in 1927 thanks to the vision of philanthropist Don Walter Wijewardene, son of Helena Wijewardene Lamathani of Sedawatte, the Kelaniya Duruthu Maha Perahera has grown into one of Sri Lanka’s most elaborate and grand low-country Buddhist pageants.
The Perahera commemorates the sacred visit of the Buddha to Kelaniya, the most revered temple in Sri Lanka’s Western Province. Celebrated annually during Duruthu Poya in January, the event showcases a fusion of historic, cultural, and religious traditions.
This year, under the guidance of Chief incumbent Venerable Professor Mahinda Sangarakkitta Nayaka Thera and Dayaka Sabha President Dr. Saman Weerasinghe, the festivities began with the ceremonial handover of the Sacred Relic Casket by Chancellor of Kelaniya University, Agra Maha Panditha Ven. Professor Kollupitiya Mahinda Sangharakkita Nayake Thera, to Chief Basnayake Nilame Dhammika Attygalle.
The sacred relic procession was followed by three Devale Peraheras dedicated to God Vibishana, God Kataragama, and God Vishnu, captivating devotees and tourists alike with traditional drumming, vibrant costumes, and ceremonial elephants.
The Perahera festivities also featured Pahalamaluwe Perahera on 8th January, Sacred City Perahera on 9th January, and the Grand Duruthu Maha Perahera on 10th January, with all events commencing at 8:00 pm. Special enclosures were arranged to accommodate foreign tourists, providing an immersive view of Sri Lanka’s rich cultural heritage.
As lanterns faded into the night sky and devotees paid homage, the Kelaniya Duruthu Perahera once again reaffirmed its place as a cornerstone of Sri Lanka’s cultural and religious calendar.
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