News
Lankan economic don in Australia explains tough road ahead with commercial creditors
By Rathindra Kuruwita
Bilateral creditors will never reduce the face value of the money they have lent and that the only concession Sri Lanka will receive will be lowering of interest rates, Professor of Economics at the Australian National University Premachandra Athukorala has said.
“They can also assist Sri Lanka by extending the period where debt has to be repaid,” he said.
“Let’s look at Zambia and Ghana, two countries that recently concluded debt restructuring. Bilateral creditors only provided concessionary interest rates and loan repayment periods. They will never reduce the face value of the loans,” he said.
Ghana has received about a 37% haircut from bondholders with 5% interest on new bonds from 2024 through July 2028 and 6% interest thereafter until 2035.
“Sri Lanka still can’t borrow from the international financial markets although an agreement with bilateral creditors has been made,” he said. An agreement must be reached with commercial creditors before Sri Lanka can resume borrowing.
“Pakistan has a much larger debt burden but it didn’t default like Sri Lanka. This is because they went to the IMF, before things really went bad, and signed a stand-by agreement. IMF’s Stand-By Arrangement (SBA) was created in June 1952 to provide financing to countries requiring help with balance of payments problems. The SBA has often been used by member countries and is the dominant lending instrument of the IMF, especially for emerging market countries,” he said.
Athukorala said that Zambia had benefited from a haircut of 21 percent after four-year negotiations. On the other hand, Ghana received a 37 percent haircut.
“It’s fascinating to study why different countries end with different haircuts. The simplest reason I can give is that you can get bigger haircuts if the debt restructuring process drags on. Zambia took about four years to restructure debt. On the other hand, Ghana had better leadership and a better plan and they finished the process in 18 months,” he said.
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Landslide Early Warnings issued to the districts of Kandy and Nuwara Eliya extended
The landslide early warnings issued to the Districts of Kandy and Nuwara Eliya by the Landslide Early Warning Center of the National Building Research Organisation have been extended till 0600 hrs on 15th February 2026.
Accordingly,
The Level II [AMBER] warnings issued to the Divisional Secretaries Divisions and surrounding areas of Walapane and Nildandahinna in the Nuwar Eliya district and the
Level I [YELLOW] warning issued to the Divisional Secretaries Divisions and surrounding areas of Pathadumbara in the Kandy district have been extended.
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Advisory for Severe Lightning issued to the Western, Sabaragamuwa and Southern provinces and Badulla and Nuwara-Eliya districts
Advisory for Severe Lightning Issued by the Natural Hazards Early Warning Centre at 11.30 a.m. 14 February 2026 valid for the period until 11.30 p.m. 14 February 2026
Thundershowers accompanied with severe lightning are likely to occur at some places in the Western, Sabaragamuwa and Southern provinces and in Badulla and Nuwara-Eliya districts after 1.00 p.m. There may be temporary localized strong winds during thundershowers.
The General public is kindly requested to take adequate precautions to minimize damages caused by lightning activity.
ACTION REQUIRED:
The Department of Meteorology advises that people should:
Seek shelter, preferably indoors and never under trees.
Avoid open areas such as paddy fields, tea plantations and open water bodies during thunderstorms.
Avoid using wired telephones and connected electric appliances during thunderstorms.
Avoid using open vehicles, such as bicycles, tractors and boats etc.
Beware of fallen trees and power lines.
For emergency assistance contact the local disaster management authorities.
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Teacher recruitment examinations will be conducted in accordance with the relevant court decisions – PM
Prime Minister Dr. Harini Amarasuriya stated that the forthcoming two teacher recruitment examinations will be conducted in accordance with the relevant court decisions pertaining to the ongoing legal proceedings and further noted that, taking into consideration the requests received, steps have been taken to make a request to Court’s approval to revise the conditions of the effective date of degree completion.
The Prime Minister made these remarks while addressing a meeting held at Monaragala Royal College to brief education authorities of the Monaragala District on the new education reforms.
Under the new education reforms, Smart Boards will be provided to 132 schools in the Monaragala District as part of the program to equip secondary schools with modern technology. As a symbolic step under this initiative, Smart Boards were presented to 10 secondary schools under the Prime Minister’s patronage. This program is being implemented with the intervention of the Digital Task Force operating under the Prime Minister’s Office. It was also emphasized that a new digital policy, formulated with special attention to child protection, will be introduced in April.
As part of her visit to the Monaragala District on the 13 th of February, the Prime Minister observed the implementation of the new learning methodologies introduced for Grade One under the new education reforms. She visited Kumbukkana Sri Shanmugam Tamil Maha Vidyalaya and Maduruketiya Maha Vidyalaya in Monaragala to observe the educational activities of Grade One students.
Considering the increase of student numbers and the development of infrastructure facilities, the Prime Minister also approved a proposal submitted by the School Development Society to rename Maduruketiya Maha Vidyalaya as Monaragala Dharmaraja Maha Vidyalaya.
Teachers briefed the Prime Minister that the new education system, supported by revised workbooks and activity-based learning methods, has proven to be effective, with students participating enthusiastically.
Addressing education officials further at the meeting held at Monaragala Royal College, the Prime Minister stated:
“Although this will not provide a complete solution to the existing teacher vacancies, these examinations can offer considerable relief. According to the Court’s previous determination, the effective date of degree completion had been set as 30.06.2025. However, considering numerous requests and following the cabinet approval we have sought Court’s consent to revise this date. We will act in accordance with the decision granted.
Funds allocated for school infrastructure must be utilized transparently and in line with proper planning, and progress must be reported accordingly. We cannot move forward by dividing ourselves along national, provincial, rural, or urban lines. As education authorities, you must make swift and accurate decisions based on correct data.
Further, discussions are already underway within the Piriven Committee of the Ministry of Education to develop Piriven education and to address the issues faced by Piriven teachers.”
The event was attended by the members of the Maha Sangha, Uva Province Governor Attorney-at-Law Kapila Jayasekara, Deputy Minister of Trade and Commerce R.M. Jayawardhana, Member of Parliament Ajith Agalakada, Uva Provincial Education Secretary Nihal Gunarathne, and several officials from the education sector.



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