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‘DDO will cause loss of over Rs. 97 bn to banking sector’

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Gammanpila

‘CBSL employees receiving higher interest rate of 29 percent’

Pivithuru Hela Urumaya (PHU) leader and dissident SLPP MP Udaya Gammanpila yesterday (04) said that though the government insisted that its Domestic Debt Optimisation (DDO) programme would have no impact on the banking sector, banks could lose as much as Rs 97 bn.

Addressing the media at the PHU office at Pita Kotte, Attorney-at-Law Gammanpila said that examination of the Cabinet Memorandum on DDO, along with the Central Bank’s presentation to the Cabinet, had revealed the true situation.

The former Power and Energy Minister said: “According to Page 3 of the Cabinet Memorandum, dated 28.06.2023, presented by Minister of Finance Ranil Wickremesinghe, the outstanding value of Sri Lanka Development Bonds is $886 million, or Rs 272 billion.  According to Page 29 of the Presentation of the Central Bank, there will be a capital reduction of 30% of the SLDB, which is known as haircut. Accordingly, there will be a haircut of Rs 81.6 billion.

85% of the SLDBs are held by domestic banks.  Hence, the loss to be incurred to the banks because of the haircut is Rs 69 billion. Further, a 30% haircut is applicable to FCBU loans amounting to $323 million, or Rs 92 billion. 30% of this amount is Rs 28 billion.  Accordingly, the total loss from both Bonds and FCBU loans are Rs 97 billion. Additionally, there will be an interest rate reduction of approximately 35%.  We have not calculated the loss associated with interest rate reduction. Hence, definitely, there will be an adverse impact on commercial banks’ liquidity and profitability from the domestic debt optimisation process.”

The PHU leader questioned how the EPF had given special status to Central Bank employees, much to the disappointment of other members of the country’s largest social security scheme. Declaring that the responsibility of the Central Bank is to invest EPF funds wisely and provide sufficient and equal returns to the members, MP Gammanpila said that in 2022 Central Bank employees were paid 29 percent interest whereas others received nine percent. How come the EPF managed by the Central Bank treated beneficiaries differently, the MP asked.

The PHU leader demanded that the Central Bank employees’ EPF be merged with the main body and administered as one unit.



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UPDATE: Flash flood on Nepal-Tibet border kills more than 100, with hundreds of tourists missing

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More than 100 people have been killed in Nepal and Tibet, and hundreds of tourists are missing, after a massive flash flood and mudslide

The missing tourists include more than 100 from India, 54 from the US, and 33 from the UK,  as well as more than 100 from Nepal itself, according to Nepal’s tourist board. The area is popular with pilgrims and trekker.

Dozens of police officers and army prtxonnel  are also missing, as well as power workers. My family was swept away in front of me, one woman tells us – she and her son survived by climbing to a rooftop

In Tibet, Chinese state media report three dead and 265 missing,  CCTV from Tibet shows a wall of water and mud hitting buildings at a border crossing.

Authorities initially thought an earthquake may have triggered a landslide – the US Geological Survey now says the sesimic energy was instead generated by a landslide.

(BBC)

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Advisory for High Waves for the sea areas extending from Colombo to Pottuvil via Galle, Matara and Hambantota

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Advisory for High Waves 
Issued by the Natural Hazards Early Warning Centre Issued at 03.30 p.m. on 26 August 2026 Valid for the period until 03.30 p.m. 27 August 2026

An advisory for high waves has been issued for the sea areas extending from Colombo to Pottuvil via Galle, Matara and Hambantota and naval and fishing communities engaged in activities in the aforementioned sea areas, as well as coastal communities living in the aforementioned nearshore areas, are advised to remain vigilant in this regard

The swell waves (about 2.0 m – 3.0 m) height (This is not for land area) may increase in the sea areas off the coast extending from Colombo to Pottuvil via Galle, Matara and Hambantota.  There is a possibility that near shore sea areas off the coast extending from Beruwala to Matara via Galle, may experience surges due to swell waves.

 

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We must create social awareness to ensure the physical and mental well-being of children with disabilities – PM

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Prime Minister Dr. Harini Amarasuriya stated that, given their particular vulnerability children with disabilities require protection, and stressed the need to foster social awareness to protect them from negative social influences while promoting their physical and mental well-being. She emphasized the need to implement awareness programmes for parents, teachers and other members of society towards this end.

The Prime Minister made these remarks on Tuesday [August 25]  while visiting and observing the National Institute of Special and Inclusive Education – Shishyodaya, located in Veniwelkola.

The purpose of the Prime Minister’s visit was to observe the institutional structure and gain an understanding of the areas that require further development.

The Prime Minister emphasized that a systematic mechanism should be established to transform the institution, which was established in 2019 outside the basic standards and plans for Inclusive Education, into an institution that provides quality education to children and fulfills the targeted objectives of inclusive education. She also proposed appointing a special committee to make the necessary recommendations in this regard.

The Prime Minister further stated that steps would be taken in coordination with the Ministry of Health to address the shortage of therapists and medical professionals required to provide clinical services to students at the institution. She also stressed that the maintenance of equipment and buildings should be carried out properly using the financial allocations provided for such purposes.

The Prime Minister further noted that finding sustainable solutions to the issues faced by the institution is essential, while immediate interventions should be made to address issues that can be resolved without delay. The welfare of the teachers serving at the institution was also discussed during the visit.

Member of Parliament Anura Panagoda, Chairman of the Homagama Pradeshiya Sabha Kasun Rathnayake, Secretary to the Ministry of Education, Higher Education and Vocational Education Nalaka Kaluwewa, ministry officials, parents and students were present.

[Prime Minister’s Media Division]

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