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Domestic debt restructuring won’t affect membership balance of any public funds

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President Ranil Wickremesinghe assured that the restructuring of domestic debt will have no impact on the membership balance of any public funds, including the Employees’ Provident Fund (EPF).

He emphasized that the rate of return for superannuation funds will not be affected in any way.

Furthermore, the President stated that the restructuring of domestic debt will not pose any threat to the stability of the country’s banking system, whether it be public or private banks. He specifically mentioned that the deposits of more than 50 million bank depositors will remain unaffected, and there will be no changes to the current interest rates paid on bank deposits.

President Ranil Wickremesinghe also announced that proposals for restructuring both foreign and domestic debt will be presented to the Cabinet tomorrow (28).

The President made these statements while inaugurating the Gampaha District Secretariat Administrative Complex, ‘Laksiyane Mandiraya,’ which has been constructed with the aim of providing efficient and regular government services to the people of the Gampaha district. The complex, with an expenditure of nearly Rs. 4 billion, stands at seven stories tall.

It was highlighted that Sri Lanka’s total public debt, comprising both domestic and foreign debt, amounted to $83,700 million by the end of 2022, representing 128.3% of the Gross Domestic Product (GDP). Of this amount, the foreign debt totalled $41,500 million, accounting for 63.6% of the GDP. The President also noted that the domestic debt at that time stood at $42,100 million, which constituted 64.6% of the GDP.

The President highlighted the urgency of restructuring the country’s debt, stating that without such measures, the public debt would exceed 100% of the GDP by 2035. He emphasized that foreign creditors have already expressed their agreement to participate in the debt restructuring process.

To ensure debt sustainability in Sri Lanka, the President emphasized the need for restructuring both external and domestic debt. Acknowledging the significant burden carried by foreign creditors, he mentioned that the country is set to receive 17 billion US dollars from them in the next five years. The President emphasized the importance of local creditors also contributing to this effort.

The proposed debt restructuring plan has been designed with the primary objective of safeguarding the public’s bank deposits. The President underlined the responsibility of protecting the depositors of all banks regulated by the Central Bank. He assured that the proposed domestic debt restructuring method poses no harm to bank depositors and will not lead to a collapse of the banking system. On the contrary, it will pave the way for a restructuring process that can rebuild the economy.

The President further stated that the country’s economic recovery, reduction in interest rates, the government’s ability to provide subsidies easily, and the reduction of both domestic and foreign debt burden in the next decade will yield positive results benefiting the people of the country.

During his official visit to France, the President engaged in discussions with Commonwealth Secretary General Patricia Scotland, International Monetary Fund Managing Director Kristalina Georgieva, Netherlands Deputy Prime Minister and Finance Minister Sigrid Kaag, American Treasury Secretary Janet Yellen, and Japanese Foreign Minister Yoshimasa Hayashi regarding foreign debt restructuring. The President highlighted the progress being made in Sri Lanka’s financial sector during these discussions. He expressed satisfaction that they were all eager to assist in reversing the crisis in Sri Lanka and affirmed their commitment to contribute significantly to the country’s economic recovery.

The President also said that during a recent telephone conversation with the Indian Finance Minister, Mrs. Nirmala Sitharaman, she had expressed her country’s intention to positively contribute to Sri Lanka’s debt restructuring and economic stability. The President said that he would hold detailed discussions on the matter during his upcoming visit to India.

The President also mentioned that Foreign Minister Ali Sabri, who is currently on an official visit to China, has agreed to enhance bilateral relations and strengthen economic ties between the two countries. Minister Sabri held fruitful discussions with China’s Foreign Minister, Mr. Qin Gang, sharing their views on deepening cooperation.

President Ranil Wickremesinghe further revealed that, during a meeting with the Chinese Finance Minister, Liu Kun, in Beijing, he was briefed on the economic stabilization and progress plan of the country. Minister Ali Sabri expressed gratitude for China’s special contribution during the previous crisis.

During the visit, the President held discussions with the Chairman of the Chinese Exim Bank, Wu Fulin, and other Chinese officials appointed for the purpose of restructuring Sri Lanka’s foreign debt. They assured their commitment to contribute to the debt restructuring process in the best possible manner.

The event was attended by Prime Minister Dinesh Gunawardena, Ministers Prasanna Ranatunga, Nalin Fernando, State Ministers Shehan Semasinghe, Prasanna Ranaweera, Sisira Jayakodi, Lasantha Alagiyawanna, Janaka Wakkambura, Gampaha District Development Committee Chairman and Members of Parliament Sahan Pradeep, Nimal Lanza, Sudarshanee Fernandopulle, Milan Jayathilaka, President’s Senior Adviser on Climate Change Ruwan Wijewardena, Western Province Governor Roshan Gunathilaka, and other dignitaries.

(President’s Media Division)

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Passengers jump from plane’s wing after fire alert on Spain flight, triggers panic

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Wildfires have broken out on an island and in towns near Athens in Greece, with blazes also being sparked in Turkey and Syria.

The Hellenic Fire Service and local authorities said that two villages – Tsakeoi and Limnionas – had been evacuated on the island of Evia after the blaze started late on Friday.

One fire service official said more than 160 firefighters, 46 trucks and five aircraft were deployed in southern Evia to put out the fire.

Southern Evia, to the east of Athens, was one of several regions in Greece placed on high alert for wildfires over gale-force winds forecast for today.

Images from Koropi, a town to the southwest of Athens, also show houses burnt down and helicopters dropping water on burning forests.

It marks the latest wildfires to break out in Greece – where blazes are common during the summer – as it tackles strong winds and dry conditions amid an early summer heatwave in southern Europe.

Officials have linked the conditions to at least nine deaths across the continent.

A wildfire broke out in Achlia on the island of Crete on Wednesday, forcing thousands of residents and tourists to evacuate – with some taken to a nearby basketball arena and hotels in safer parts of the island.

The fire service official told Reuters on Friday that the fire in Crete was largely contained.

Meanwhile, blazes have also broken out on Turkey’s west coast – the latest in a series of blazes which started in late June – as well as its southerly neighbour Syria.

At least five fires have been reported in Izmir after extreme heat, strong winds and low humidity. Two people have been killed by the blazes, while tens of thousands have been evacuated.

Fires also flared on both sides of the Turkish-Syrian border on Friday, with a new blaze reported near the town of Dortyol in Turkey’s border province of Hatay.

According to Syria’s Civil Defence, wildfires have spread across large parts of mountainous areas in the Latakia province.

The government department added that conditions have hampered efforts to bring the fire under control, and noted unexploded ordnance could be in some of the areas affected.

Source: SKY NEWS

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CBSL extends Perpetual Treasuries suspension for six months

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The Central Bank of Sri Lanka (CBSL) has decided to extend the suspension of Perpetual Treasuries Limited (PTL) from carrying on the business and activities of a Primary Dealer for a further period of six months.

The extension is with effect from 4.30 p.m. on 05th July 2025, in order to continue the investigations being conducted by the Central Bank of Sri Lanka.

The suspension has been extended by CBSL acting in terms of the Regulations made under the Registered Stock and Securities Ordinance and the Local Treasury Bills Ordinance.

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Kataragama Basnayake Nilame pressured over complaint against Kapuwas’ donation misuse

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It has been reported that Dishan Wickramaratne Gunasekara – the Basnayake Nilame of the historic Ruhunu Kataragama Maha Devalaya, is facing pressure including from several parties including political circles to withdraw his complaint lodged against the custodians (Kapu Mahattaya) of the devalaya.

The issue had arisen after it was discovered that some custodians were collecting money into their own tills instead of allowing them to be deposited in the official donation box.

Public discussion about the transparency of the temple’s donations intensified after the Basnayake Nilame had begun using a portion of the funds for community projects like hospital construction.

Traditionally, devotees often handed donations directly to the custodians, but the Basnayake Nilame had urged the public via media to place offerings only in the official donation box managed by the Ministry of Buddha Sasana, Religious and Cultural Affairs.

He subsequently arranged a proper audit of all such donations for the first time.

In response, some custodians had reportedly begun pressuring devotees near the official box to hand over donations to them instead.

Upon learning of this, the Basnayake Nilame had lodged a complaint with the Kataragama Police, arguing that diverting funds from the official box amounts to fraudulent misappropriation.

Acting on the complaint, police arrested 02 custodians who were collecting offerings near the official box.

However, other custodians then surrounded the police station and pressured the officers to release the arrested individuals, resulting in their release.

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