- President Ranil Wickremesinghe says Govt expects to restructure USD 17 bn out of USD 41 bn of foreign debts within 5 years: asserts that accordingly, local debt must also be restructured: analysts point out that USD 13 bn of the foreign debt referred to by the President is not subject to re-structure as it is due to “priority” creditors (WB, ADB & IMF) and therefore only USD 28 bn will be eligible for re-structure: analysts further say that expecting the balance private & bi-lateral creditors of USD 28 bn to accept a 60% “haircut” of USD 17 bn is a very unlikely proposition.
- President Ranil Wickremesinghe says restructuring of domestic debt will not affect the Member balances of the EPF & ETF as well as the rate of return paid in the past: based on the President’s comments, analysts fear the Govt would default on the interest payment of approximately 20-25% due for the year 2023 on the balance of the Members’ accounts as at end-Dec’22.
- President Ranil Wickremasinghe says the local debt restructuring will not affect the deposits in the banking system & will not affect any interest on bank deposits that is currently being paid: analysts point out that when the Govt debt is re-structured, there is a distinct possibility of the default by the Govt affecting the liquidity and stability of the banks.
- Central Bank’s T-Bill auction yesterday fails miserably with only Rs.55 bn (42%) accepted out of Rs.130 bn: LKR continues to depreciate for the 3rd consecutive day and tumbles to Rs.316.72 per USD: Stock Market loses steam and ASPI crashes by 0.69%.
- Customs Senior Director Sudaththa Silva says 5 local traders detected with gold filled in plastic capsules inserted in their rectums, while trying to leave the country: Customs officials retrieve 15 such capsules that altogether bore 5,650 grams of gold in a “gel” like solution, valued at Rs.107 mn.
- Speaker Mahinda Yapa Abeywardana convenes a special session of Parliament on Saturday, 1st July at the request of the PM: informed sources say Parliament is to be convened on Saturday to obtain approval for the domestic debt restructuring process: analysts point out that similar approval was not sought when certain Sri Lankan authorities first announced Sri Lanka’s debt default and restructuring on 12th April 2022.
- SLPP MP Namal Rajapaksa says the determination of eligible recipients for the “Aswesuma” benefits has caused great injustice to those already receiving Samurdhi: SJB MP S M Marikkar says the Govt has curtailed the Samurdhi benefit to implement the “Aswesuma” to deceive the people: State Minister Anupa Pasqual says people must not to be victims of politically motivated agendas launched by various groups to stop the “Aswesuma” welfare plan.
- Health Minister Keheliya Rambukwella issues gazette to reduce prices of 60 types of medicines by 16%.
- Attorney General informs Court of Appeal that the Health authorities have taken a decision to raise the retirement age of Consultant Specialist Doctors to 63 years.
- Sri Lanka beats Scotland by 82 runs in ICC Cricket World Cup Qualifier: Sri Lanka – 245 all out (49.3 overs): Pathum Nissanka 75, Charith Asalanka 63: Scotland – 163 all out (29 overs): Maheesh Theekshana 41/3, Wanindu Hasaranga 42/2.
