By Sandasen Marasinghe
SJB Parliamentarian Harsha de Silva challenged the Government on Friday (6) to present the Debt Restructuring Agreement signed with International Sovereign Bond (ISB) holders, if such an agreement exists as claimed by the NPP Government.
Refuting the government’s claims, Harsha de Silva stated that the agreement had not yet been finalised and was due to be signed on 12 December. He pointed out that the government still had ample time to amend its clauses in a manner that would benefit the public, if it genuinely intended to do so.
He further criticised the government for the impact debt restructuring had on the Employees’ Provident Fund (EPF). He noted that although the JVP and NPP had previously voiced concerns and staged protests over such matters before coming to power, they had remained silent once in government. “We expected the NPP to stand up for this,” he said. “But unfortunately, they did not.”
The MP made these remarks during the second day of the debate on the Vote on Account presented by the government on Thursday (5). The Vote on Account sought approval for government expenditure for the first four months of 2025.
De Silva acknowledged that, while the IMF Agreement was necessary, certain clauses within it required amendment to ensure social justice. “Accepting it in its current form is not acceptable,” he added.
He highlighted that the government’s primary expenditure for the first four months of 2025, as outlined in the Vote on Account, amounted to Rs 1,403 billion. In addition, Rs 4,172 billion was allocated for public debt servicing, bringing the total expenditure to Rs 5,600 billion. With projected revenue for the four months set at Rs 1,600 billion, the government was seeking approval to borrow Rs 4,000 billion to cover the shortfall. This would necessitate Inland Revenue for 2025 to reach Rs 4,800 billion.
De Silva also addressed claims made by Minister Wasantha Samarasinghe that the government would secure a 27 per cent “haircut” as part of the Debt Restructuring Agreement. He argued that, in practice, this figure would drop to approximately 14.96 per cent.
He criticised the NPP and JVP for allegedly misleading the public during election campaigns by claiming that only 53 per cent of loan funds had been received by Sri Lanka while the remainder had been misappropriated. “They said the country’s debt liability over 75 years was Rs 8 trillion, while the value of assets stood at Rs 2 trillion,” he said. “This led them to claim that Rs 6 trillion had been stolen. But, in reality, the debt liabilities are recorded under the Treasury, whereas the assets are held by various institutions like the RDA and UDA. For instance, the Mahaweli Project’s assets have not been included, although its debts are accounted for. This is merely an accounting issue, not evidence of misappropriation.”
He conceded that some funds might have been misused, suggesting that the government should investigate and bring those responsible to justice, a move the Opposition would support.
De Silva also criticised the NPP for allegedly misleading the public into believing that the Rs 8 trillion was “odious debt” and that a forensic audit would be conducted before any repayments were made. “People believed that the funds had been stolen and that the country need not repay the debt,” he said. “This deception misled voters into electing you. Now, instead of fulfilling your promises, you are borrowing more to settle existing loans. You must deliver on what you promised.”
He referenced comments made by the Chinese Ambassador, who, ten days prior, reportedly told the NPP and JVP that their projects were not “white elephants” and that the loans must be repaid. “That is correct,” Harsha de Silva said.
He questioned why the NPP and JVP allegedly misled the public and pointed out the contradictions between their promises and actions. “Two weeks before the Presidential Election, Minister Harshana Suriyapperuma, speaking at the Ceylon Chamber of Commerce, revealed that the NPP and JVP planned to conduct their own Debt Sustainability Analysis (DSA) on debt restructuring. Yet, they now deny having made such statements. That is pure deception, and the public fell for it. You did this deliberately.”
De Silva concluded by accusing the NPP and JVP of following the same path laid by Ranil Wickremesinghe, without making any significant changes.
The post ‘Present Debt Restructuring Agreement if one exists’ appeared first on Ceylon Today.
