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Domestic debt restructuring could have devastating impact on country, warns GL

Published

3 years ago

2023/04/11

Sahan Weerasooriya

G.L. Pieris

By Shamindra Ferdinando

The International Monetary Fund (IMF) owed an explanation as regards the recent government declaration that domestic debt restructuring was part of the programme implemented in terms of Sri Lanka’s agreement with the lending agency, top Opposition spokesperson Prof. G.L. Pieris, MP said yesterday (10).

Having repeatedly assured that domestic debt wouldn’t be restructured, the government had announced the controversial move, Prof. Peiris said at the weekly media briefing at Freedom People’s Alliance Office at Nawala.

Prof. Peiris asserted that the proposed domestic debt restructuring involved as much as Rs 04 trillion in Treasury bills and Rs 08 trillion in Treasury bonds.

The Central Bank recently declared that it was also exploring the possibility of a domestic debt optimisation (DDO) operation aimed at liquidity relief while preserving financial stability to avoid further eroding of Sri Lanka’s repayment capacity. The Central Bank has stated this DDO would be conducted on a voluntary basis and be based on consultations with major T-Bonds holders.

Prof. Peiris said that they expected to take up the entire gamut of issues with the IMF in June when a Fund delegation was expected to visit Colombo for the first review of the USD 2.9 bn bailout package. The MP said that the IMF couldn’t absolve its responsibility for what was happening here where the ruling alliance went to the extent of targeting Supreme Court judges.

The former minister said though they were still not sure whether the IMF agreement was made available.

The SLPP rebel group spokesman questioned the impact the domestic debt restructuring/DDO operation would have on the Employees Provident Fund (EPF) and Employees Trust Fund (ETF). A significant impact on those funds would cause a crisis of unprecedented magnitude, Prof. Peiris said, adding that overall the growing public anger over the proposed privatization of profit making public enterprises and new tax regime were likely to trigger protests.

Prof. Peiris alleged that the new Anti-Terrorism Act was meant to suppress public protests. Describing the new law as repressive legal regime, the former Law Professor said that the Wickremesinghe-Rajapaksa dispensation was preparing to launch massive onslaught on public freedoms.

The former minister said that having disrupted the Election Commission, now the government was busy attacking the Human Rights Commission. The SLPP MP questioned the rationale in influencing selected members of the HRC against its Chairperson Justice Rohini Marasinghe.

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President meets senior officials of the Urban Development Authority

Published

60 mins ago

2026/05/18

Priyan

A discussion between President Anura Kumara Dissanayake and senior officials of the Urban Development Authority (UDA) was held this afternoon (18) at the Presidential Secretariat.

The meeting focused extensively on new development projects planned by the Urban Development Authority. The President emphasised the need to ensure that the budgetary allocations made for these projects in the current year are utilised effectively within the same financial year.

Detailed discussions were also held on projects planned to be implemented jointly by multiple institutions, including the importance of holding consultations with all relevant agencies to reach final decisions and the need to clearly define responsibilities for each institution in both implementation and maintenance phases of the projects.

Attention was drawn to key initiatives such as the Kelani River flood control project, water management projects in Colombo city and the Beira Lake restoration project. The need for a dedicated programme for low-income housing in areas such as Ratmalana and Moratuwa was also highlighted. During the discussion, Minister of Transport, Highways and Urban Development Bimal Rathnayake underscored the importance of introducing a structured management framework for the effective coordination of certain projects.

Deputy Minister of Urban Development, Eranga Gunasekara, Secretary to the Ministry of Transport, Highways and Urban Development, Senior Professor Kapila C.K. Perera, Chairman of the Urban Development Authority (UDA), M.G. Hemachandra and the Heads representing the Urban Settlement Development Authority (USDA), Sri Lanka Land Development Corporation (SLLDC), National Physical Planning Department (NPPD) and the Condominium Management Authority (CMA) were also present at the meeting.

(PMD)

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CEAT Kelani Branch Inter-Company Employees’ Union makes donation to the ‘Rebuilding Sri Lanka’ Fund

Published

1 hour ago

2026/05/18

Priyan

The Inter-Company Employees’ Union of the Kelaniya Branch of CEAT Sri Lanka has made a financial donation of Rs. 1,148,000.00, a day’s salary of its members to the ‘Rebuilding Sri Lanka’ Fund established to support the restoration of livelihoods and the rebuilding of areas affected by cyclone Ditwah.

Secretary of the Inter-Company Employees’ Union of the CEAT Kelani Branch, D.G.S.D. Navaratne, handed over the donation to the Chief of Staff to the President, Prabhath Chandrakeerthi at the Presidential Secretariat this morning (18).

Treasurer of the Inter-Company Employees’ Union of the CEAT Kelani Branch, Y.P.I.C. Karunathilaka, together with members of the Executive Committee, were also present on the occasion.

(PMD)

Latest News

Prime Minister off to the United Kingdom to participate in the 22nd Annual Commonwealth Education Forum

Published

3 hours ago

2026/05/18

Priyan

Prime Minister Dr. Harini Amarasuriya departed on an official visit to the United Kingdom to participate in the 22nd Annual Commonwealth Education Forum and the Commonwealth of Learning (COL) 2026 Board of Governors Meeting.

During the visit, the Prime Minister is scheduled to participate in several high-level academic and diplomatic engagements aimed at strengthening cooperation in the fields of education, development studies, research collaboration, and international partnerships.

As part of the visit, the Prime Minister will meet with Ms.Bridget Phillipson, Secretary of State for Education of the United Kingdom, at the UK Department for Education, to discuss areas of cooperation in education and related sectors. She is also expected to meet Ms.Yvette Cooper, Foreign Secretary of the United Kingdom, for discussions on matters of bilateral interest and cooperation between Sri Lanka and the United Kingdom.

In addition, the Prime Minister is expected to meet Ms.Shirley Ayorkor Botchwey, Secretary-General of the Commonwealth, on the sidelines of the 22nd Annual Commonwealth Education Forum and the Commonwealth of Learning (COL) 2026 Board of Governors Meeting.

During the visit, the Prime Minister will attend a public event at the Institute of Development Studies at the University of Sussex and she will also take part in the ceremony marking the 60th Anniversary of the Institute of Development Studies. The Prime Minister is also scheduled to address a session at the Oxford School of Global and Area Studies at the University of Oxford, followed by a question-and-answer session with scholars and students.

The visit is expected to strengthen Sri Lanka’s engagement with academic institutions, international development partners, and Commonwealth member states, particularly in the areas of education, research, policy dialogue, and capacity building.

[Prime Minister’s Media Division]