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Opposition vows to fight domestic debt restructuring plans of govt
ECONOMYNEXT –The main opposition SJB would fight to defeat the government’s plans to restructure domestic debt, opposition leader Sajith Premadas said, offering the opposition’s assistance in sending a strong message to the international community.
Premadasa said at a meeting with representatives of the Ceylon Bank Employees’ Union on Thursday May 18 that the opposition is ready to tell the international community to not touch Sri Lanka’s domestic debt.
“We will fight both in and outside parliament and internationally the government’s attempt to restructure domestic debt,” Premadasa said.
The opposition leader claimed the government has changed its position on domestic debt restructuring (DDR). The government had maintained in March that there would be no restructuring of domestic debt, only to sing a different tune after the International Monetary Fund (IMF) programme was approved.
“In March, not even the president said domestic debt would be restructured,” he said.
“They’re now saying they have to do it. Why did you keep hoodwinking the people?” he asked, adding that DDR was first on the agenda.
“You can’t dance to your own tune, nor can you make the people dance,” said Premadasa. However, the SJB is ready to assist the government in reversing the decision.
“If the government wishes to, even at this last moment, send a message to the international community, with assistance from the opposition, to not touch domestic debt, we’re ready to work together with the government to communicate this to the international community,” said Premadasa.
A top IMF official told reporters on Monday May 15 that the international lender is in constant dialog with Sri Lanka over its DDR plans. The IMF defines a macro framework, ceilings on gross financing needs (annual debt volumes that are issued and re-issued), foreign debt service, and debt stocks on a timeline for a defaulted country to make its debt ‘sustainable’.
In April, President Ranil Wickermesinghe was reported to have told the cabinet of ministers hat a debt restructuring framework to negotiate with creditors would be announced by May.In parallel, discussions will also commence with private creditors. Sri Lanka met private creditors in Washington in April.
Sri Lanka also has to restructure its domestic debt to meet gross financing need (annual financing and debt roll-over totals) ceilings from 2027-2032 to make its debt ‘sustainable’ according to an IMF debt analysis.The central bank has said domestic debt restructuring will be voluntary, but fresh jitters hit the market last week triggering a rise in bond yields.
Several countries which were hit by monetary instability from flexible inflation targeting and flexible exchange rates or similar impossible trinity regimes, which had market access had defaulted in recent years and more are on the brink of default.
External sovereign defaults started in the early 1980s with similar policies in Latin America, which has among the worst central banks in the world and some Eastern European nations.
The Sri Lanka Navy rescued a fisherman from a local fishing trawler that encountered distress due to adverse weather conditions off the eastern coast of Sri Lanka.
The rescue operation took place on 17 July 2026, approximately 15 nautical miles off Pothuvil. The operation was launched following information received by the Maritime Rescue Coordination Centre (MRCC) Colombo.
In response, the Sri Lanka Navy deployed the Offshore Patrol Vessel SLNS Vijayabahu along with additional craft to conduct a search operation in the designated sea area, where they successfully located the distressed fisherman.
Following the rescue, the individual was brought aboard SLNS Vijayabahu, where naval personnel administered preliminary first aid. He was subsequently brought to the mainland and rushed for further medical attention.
Meanwhile, the Navy, along with the coordination of MRCC Colombo, remains constantly prepared to swiftly respond to the eventualities faced by maritime and fishing communities operating within the island’s Search and Rescue Region (SRR).
The countrywide dengue outbreak has intensified, with the death toll rising to 50, by July 16, as the number of reported infections surpassed 73,000, according to the National Dengue Control Unit (NDCU).
The country has recorded 73,455 dengue cases so far this year, with the case fatality rate standing at 0.07 percent, highlighting the severity of the ongoing outbreak.
The Western Province continues to remain the worst affected region, accounting for more than half of the total cases, with 38,700 infections. The Gampaha District has recorded the highest number of cases in the province with 15,341, followed closely by Colombo with 14,625.
The Southern Province has reported 11,382 cases, while the Sabaragamuwa and Central provinces have each recorded more than 6,000 infections.
Dengue cases have shown a sharp increase in recent months, with June recording the highest monthly total of 21,538 cases, while July has already reported 18,076 infections. In comparison, 8,590 cases were reported in May, and 5,651 in April.
Health authorities have identified 175 Medical Officer of Health (MOH) areas as high-risk locations during the 27th epidemiological week. An average of 2,677 new dengue cases are being reported daily, prompting authorities to intensify prevention and mosquito control measures.
The Colombo High Court yesterday (17) resumed hearing the money laundering case filed against Yoshitha Rajapaksa, son of former President Mahinda Rajapaksa, under the Prevention of Money Laundering Act.
The proceedings were held before High Court Judge Udesh Ranatunga, where evidence was recorded from prosecution witnesses, under the direction of Deputy Solicitor General Janaka Bandara.
President’s Counsel Sampath Mendis, appearing for Yoshitha Rajapaksa, cross-examined the witnesses during the hearing.
After recording evidence, the court ordered that further examination of evidence be postponed until July 24.
The Attorney General has filed indictments, alleging that Yoshitha Rajapaksa committed an offence, under the Prevention of Money Laundering Act, by purchasing five plots of land in Dehiwala and Ratmalana, valued at more than Rs. 73 million.
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Showers may occur in the Western, Sabaragamuwa and North-western provinces and in Kandy, Nuwara-Eliya, Galle and Matara districts
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