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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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Advisory for low pressure area over South-east Bay of Bengal Sea area

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The Natural Hazards Early Warning Centre of the Department of Meteorology has issued an advisory at 11.30 pm on 05 January 2026 regarding a low pressure area over South-east Bay of Bengal Sea area.

The low-level atmospheric disturbance in the Bay of Bengal, to the southeast of the Sri Lanka has intensified into a low-pressure area.

Hence, showery condition over the island, particularly
in the Northern, North-Central, Eastern, Uva and Central provinces is expected to enhance from January 8th.

The Meteorological Department is constantly monitoring the behavior of the system.

The general public are requested to be attentive to the future forecasts and bulletins issued by the Department of Meteorology in this regards.

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US raid on Venezuela violation of UN Charter and intl. law: Govt.

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Herath

Foreign Affairs, Foreign Employment and Tourism Minister Vijitha Herath yesterday (05) told a media conference at his Ministry that the UN should deal with the US for violating international law.

Herath, who is also a senior member of the ruling National People’s Power (NPP) party’s National Executive Council, in addition to being a member of the JVP politburo, emphasised that member states couldn’t violate UN Charter and international laws.

The Minister said so when The Island sought the government’s position on the abduction of legally elected Venezuelan President Nicolás Maduro and his wife in a lightning raid carried out amidst heavy air strikes on that country. We raised the issue at hand pointing out that there were persistent allegations regarding US and Indian interventions in the 2022 regime change operation here and that the NPP finalised defence agreements with Washington and New Delhi.

Minister Herath said that Sri Lanka backed the ongoing UN Security Council bid to deal with the developing situation in Venezuela.

Herath was flanked by Deputy Foreign Minister Arun Hemachandra and Deputy Tourism Minister Prof. Ruwan Ranasinghe.

Minister Herath said that the UN Security Council was scheduled to take up this issue today. The US is one of the five members of the UN Security Council.

In terms of the UN Charter, UN members are to refrain from the “use of force” against the territorial integrity or political independence of any state. Another permanent member of the UN Security Council, France, broke ranks with the Western block to condemn US action. France unequivocally declared that the US operation was a “violation of sovereignty.

Minister Herath didn’t respond to the query whether he discussed the issue at hand with President Anura Kumara Dissanayake.

While pointing out that Sri Lanka had been subjected to foreign interventions, The Island sought the position the JVP in respect of US President Donald Trump threatening to move against Mexico, Cuba and Colombia as the party always took a strong stand against US actions. Declaring that his response would be for the government and not the JVP, Minister Herath said that there was a way to deal with situations through the UN.

Minister Herath strongly defended recently signed agreements with India and US pertaining to defence. Stressing that both agreements were beneficial, Minister Herath pointed out that they weren’t defence agreements but security cooperation arrangements.

The US and Sri Lanka signed a Defence Memorandum of Understanding (MoU) in November 2025, formalising defence cooperation under the State Partnership Programme (SPP) with the Montana National Guard. The MoU with India was signed in April, 2025. It was among seven MoUs.

Referring to devastating Cyclone Ditwah, the Minister said that India provided material support under the MoU signed in April whereas the US provided 10 helicopters to the SLAF recently.

Responding to a query on US-Sri Lanka tariff negotiations, Minister Herath said that about 95% of the negotiations have been finalised.

At the onset of the briefing, Minister Herath and Deputy Ministers Prof. Ranasinghe and Arun Hemachandra explained how the tourism sector and expatriate Sri Lanka work force contributed to the national economy.

Referring to Central Bank figures, they declared that tourism had brought in USD 3.2 bn whereas expatriate workers contributed USD 7.19 bn up to November last year. Once the Central Bank made available December figures it could reach USD 7.8 bn, they said. Tourism and expatriate work force together brought in as much as USD 11.6 bn, they declared, expressing hope 2026 would definitely be better.

Although the devastation caused by Cyclone Ditwah caused concerns that it may cause a significant drop in tourist arrivals, a steady flow of visitors paved the way for a comfortable 15% increase in arrivals by end of 2025, they said.

Minister Herath said that the government was happy that the country recorded the highest number of tourist arrivals this year.

By Shamindra Ferdinando

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Ban on foreign research vessels: FM promises decision within two months

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Foreign Minister Vijitha Herath yesterday said that the government would announce its decision on the ban on foreign research vessels entering Sri Lankan waters.

Addressing the media at the Foreign Ministry, Minister Herath, in response to a query, said that they were in the process of addressing the issue.

Former President Ranil Wickremesinghe declared a moratorium on the entry of foreign research vessels during 2004. Although the NPP government, in December, 2004, declared its position would be made known soon, the decision was not taken during last year. Wickremesinghe took that decision under intense Indian and US pressure to deny entry of Chinese research vessels (SF)

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