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Domestic debt restructuring: Harsha insists money belonging to EPF members must be safeguarded

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Dr.Harsha de Silva

Opposition MP Dr. Harsha de Silva has highlighted the critical considerations surrounding Domestic Debt Optimisation and its impact on the members of the Employees Provident Fund (EPF). Speaking on behalf of the Opposition, recently, de Silva emphasised the need to prioritize the interests of EPF pension fund members in any decision-making process.

“Our foremost concern should be securing the retirement benefits of the hardworking people of Sri Lanka,” de Silva stated. “The EPF, as a pension fund, plays a crucial role in ensuring a financially secure future for its members upon retirement. We cannot allow the government’s pursuit of cheap money to jeopardize the interests of EPF pensioners.”

Referring to the EPF Act, de Silva underscored the obligation for a parliamentary resolution to ensure the EPF receives sufficient funds from the Treasury to meet minimum payment requirements if it is unable to do so. He further emphasized the importance of gradually settling any resulting loans over time. “We must protect the EPF pension fund from being subjugated to the government’s needs at the expense of pensioners. The negative 47 percent real return to EPF in 2022 has severely eroded the value of the fund, and we cannot disregard this significant loss,” de Silva added.

Discussing the risks associated with domestic debt optimization, de Silva highlighted the concept of opportunity cost. “Subjecting the EPF pension fund to this optimization may result in a loss of potential reinvestment opportunities,” he explained. “For instance, if the EPF currently holds bonds maturing within the next one or two years, they have the potential to be reinvested at higher rates, ensuring better returns for pensioners. However, if these bonds’ maturity dates are extended beyond 2027 at lower rates that will have a high opportunity cost to EPF members.”

Clarifying the EPF pension fund’s overall financial position, de Silva reassured the public that the EPF is not facing immediate trouble. “The EPF pension fund maintains a positive cash flow, with contributions consistently exceeding pension payouts by approximately 30 billion rupees in recent years,” he stated. “This ensures the EPF’s ability to meet its pension obligations. However, we must acknowledge that returns on investments may decrease.”

Concluding his remarks, de Silva firmly stated that “Considering the negative real interest rate the EPF pension fund has already experienced, it is unjust to overburden it further with large opportunity costs due to domestic debt optimization. We must prioritize the interests of EPF members and strike a balance between preserving reasonable returns to the members while providing debt relief to the government. The long-term financial security of Sri Lanka’s workforce cannot be jeopardized.”



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Teachers’ unions ‘ready to bring govt. to its knees’

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Teachers, principals up in arms against alleged NGO driven education reforms

Teachers, principals and education professionals on Friday vowed to commence a nationwide campaign against the government’s plans to reform the education sector at the expense of what they described as cultural values.

President of the All-Ceylon United Teachers’ Association Ven Yalwala Pannasekera thera addressing a press conference yesterday said that trade unionists would join forces to urge the government to withdraw its educational reforms.

“We are ready to form a common front with education professionals, teachers and principals against this government. We demand that the government withdraw these reforms or get ready to go home,” Ven Pannasekera said.

“Some modules promote homosexuality. Contents in some of the modules being distributed have been copied from Indian text books.

We ask the government to explain why it had paid the National Education Institute curriculum designers,” Ven Pannasekera said.

Meanwhile, representatives of 16 teachers’ and principals’ unions visited the National Child Protection Authority yesterday to lodge a complaint demanding a probe into the inclusion of materials promoting homosexuality in school books.

Concerns were also raised at a National Sangha Council meeting held in Colombo last week at the Colombo Foundation Institute, organised to discuss the objectives of the proposed reforms.

Addressing the gathering, Professor Venerable Induragare Dhammaratana Thera said the reforms required extensive discussion, consultation with subject experts and consideration of the experience of senior administrators.

He warned that the proposed education reforms could trigger the biggest crisis currently facing the country. “Implementing these reforms in this manner will harm future generations and could even destroy the present government,” he said, likening the process to “forcing a round peg into a square hole.”

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Education Ministry drops idea of extending school hours

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The Ministry of Education on Friday decided not to extend school hours for the 2026 academic year, citing the ongoing impact of recent disasters on schools and transport systems in several provinces.

According to the Ministry, school hours for Grades 5 to 13 will remain unchanged at 7:30 a.m. to 1:30 p.m. until both education and transport networks are fully restored.

Government schools, government-approved private schools, and pirivenas are set to begin the first term of 2026 on January 5. Students in Grades from 6 to 13 will have seven 45-minute periods a day.

Education reforms will be introduced for Grades 1 and 6 in 2026.

The Ministry confirmed that activity books for Grade 1 and learning modules for Grade 6 will be distributed before lessons begin. Textbooks for all other grades have already been fully handed out.Meanwhile, the remaining sessions of the 2025 G.C.E. Advanced Level examination are scheduled to take place from January 12 to January 20, 2026.

by Chaminda Silva ✍️

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SLRC to disburse Rs 2420 mn in relief funds to 28,000 families

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The Sri Lanka Red Cross Society will provide relief funds totaling Rs. 2,420 million to assist 20,000 families displaced and 8,000 families who have lost their livelihoods due to cyclone Ditwah.

Accordingly, the Society has arranged to give Rs. 1,620 million to 20,000 displaced families, at the rate of Rs. 85,000 per family, and Rs. 800 million to 8,000 families who lost their livelihoods, at Rs. 100,000 per family, Sri Lanka Red Cross Communications Head Navindra Senarathne told the Sunday Island on Friday.

He said the funds for the 20,000 displaced families would be distributed in three instalments.

A total of 20,000 families across the country, including 1,505 families in the Trincomalee District, have been selected for this relief, with beneficiaries identified by the decision-makers of the Sri Lanka Red Cross Society, he added.

In addition, the Society is preparing to install toilet systems in 400 safe centers and provide 15,000 sets of school equipment worth Rs. 7.5 million, Navindra Senarathne told the Sunday Island.

By Sirimantha Rathnasekera ✍️

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