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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.
A meeting was held to discuss post-disaster planning and the reconstruction process, with special focus on flood-prone areas on Monday [8 th of December] at the Prime Minister’s Office under the patronage of the Prime Minister, and attended by representatives from the United Nations Development Programme (UNDP), the World Bank, and the United Nations Office for Project Services (UNOPS).
During the meeting, the Prime Minister emphasized the critical importance of timely and systematic information and data collection to support timely and effective decision-making on a daily basis following the post disaster situations. The Prime noted that accurate data flows are essential for guiding recovery efforts in the short and long term.
The Representatives outlined the need assessment process using RAPIDA and Global Rapid Post-Disaster Damage Estimation (GRADE), the UNDP’s post-crisis assessment initiated by integrating GIS technology, satellite imagery, and ground-level data, to deliver real-time, actionable insights after a crisis to helps identify affected locations, communities, infrastructure damage, debris estimates, and land use changes-providing crucial data.
The representatives of UNDP reaffirmed their commitment to supporting the Government and they expressed their readiness to collaborate closely and to strengthen ongoing partnerships to enhance the efficiency and effectiveness of post-disaster response and reconstruction activities.
The discussion was attended by the Country Manager for World Bank Dr. Gevorg Sargsyan, Resident Representatives for United Nations Development Programme (UNDP) Ms. Azusa Kubota, South Asia Director for United Nations Office for Project Services ((UNOPS), and Secretary to the Prime Minister Pradeep Saputhanthri, Additional Secretary (Development) Ms Sagarika Bogahawaththa and officials from the Department of National Planning.
[Prime minister’s media division]
News
Bandaranaike Memorial National Foundation donates Rs. 250 million to the Government for national recovery after the emergency situation
The Bandaranaike Memorial National Foundation has donated Rs. 250 million to the Government to support the rebuild of the country following the emergency situation caused by the Ditva cyclone.
Chairperson of the Bandaranaike Memorial National Foundation, former President Chandrika Bandaranaike, together with the Board of Directors, handed over the cheque to Prime Minister Dr. Harini Amarasuriya on 08 th of December at the Prime Minister’s Office.
Subsequently, a cordial discussion was held between the Foundation’s Chairperson, former President Chandrika Bandaranaike, and Prime Minister Dr. Harini Amarasuriya.
The occasion was attended by the secretary to the Prime Minister Pradeep Saputhanthri, Minister of Buddhasasana, Religious and Cultural Affairs Dr. Hiniduma Sunil Senevi, and representatives of the Board of Directors of the Bandaranaike Memorial National Foundation.
[Prime Minister’s Media Division]
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Level III landslide warnings issued to the Districts of Kandy, Kegalle, Kurunegala and Matale extended
The Level III RED landslide early warnings issued to the Districts of Kandy, Kegalle, Kurunegala and Matale by the Landslide Early Warning Center of the National Building Research Organisation [NBRO] have been extended until 1600hrs tomorrow [10th December 2025].
Accordingly,
The LEVEL III RED landslide early warnings issued to the Divisional Secretaries Division and surrounding areas of Panvila, Udapalatha, Minipe, Poojapitiya, Gangawata Korale, Thumpane, Doluwa, Pathadumbara, Ganga Ihala Korale, Harispattuwa, Akurana, Ududumbara, Pathahewaheta, Hatharaliyadda, Yatinuwara, Deltota, Medadumbara, Udunuwara, Kundasale and Pasbage Korale in the Kandy district, Yatiyanthota, Rambukkana, Aranayaka, Warakapola, Galigamuwa, Mawanella and Bulathkohupitiya in the Kegalle district, Mallawapitiya, Rideegama and Mawathagama in the Kurunegala district, and Ukuwela, Pallepola, Rattota, Matale, Laggala Pallegama, Yatawatta, Naula, Ambanganga Korale and Wilgamuwa in the Matale district have been extended.
LEVEL II AMBER landslide early warnings issued to the Divisional Secretaries Division and surrounding areas of Uva Paranagama, Hali_Ela, Meegahakivula, Badulla, Kandeketiya, Bandarawela, Soranathota, Ella, Haputhale, Lunugala, Welimada, Haldummulla and Passara in the Badulla district, Ruwanwella, Dehiowita, Kegalle and Deraniyagala in the Kegalle district, Alawwa and Polgahawela in the Kurunegala district and Nuwara Eliya, Nildandahinna, Thalawakele, Kothmale West, Mathurata, Ambagamuwa Korale, Hanguranketha, Walapane, Kothmale East and Norwood in the Nuwara Eliya district, and Kahawaththa, Kolonna and Godakawela in the Ratnapura district have also been extended.
LEVEL I YELLOW landslide early warnings issued to the Divisional Secretaries Divisions and surrounding areas of Mirigama, Divulapitiya and Attanagalla in the Gampaha district, Narammala in the Kurunegala district, and Kiriella, Balangoda, Kuruwita, Openayake, Nivithigala, Kaltota, Pelmadulla, Kalawana, Eheliyagoda, Elapatha, Ayagama, Imbulpe and Ratnapura in the Ratnapura district.
Timely and accurate data essential for effective decision making – PM
Bandaranaike Memorial National Foundation donates Rs. 250 million to the Government for national recovery after the emergency situation
Level III landslide warnings issued to the Districts of Kandy, Kegalle, Kurunegala and Matale extended
G.C.E. Advanced Level Examination will resume on 12th January 2026
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