Govt. assures no haircut on domestic debt

• Ensures no injustice will be caused to depositors, EPF, ETF and pension fund or their interest

By Ajith Siriwardana and Yohan Perera  

The government yesterday assured that there won’t be any haircut on domestic debt in the process of proposed domestic debt restructuring and gave assurance that no injustice would be caused to depositors, EPF, ETF beneficiaries or pension funds due to domestic debt restructuring.   

 State Minister of Finance Ranjith Siyambalapitiya told Parliament that debt restructuring does not mean only haircut and that domestic debt restructuring could involve debt moratorium or cutting down on interest.  

“We will never think of a domestic debt haircut. We will ensure that no injustice will be caused to depositors, EPF, ETF and pension fund or their interest,” he said.  

The Minister said this in response to a question raised by SJB MP Nalin Bandara that the country would have to face serious repercussions if domestic debt was restructured as proposed.  

The MP said if the government had agreed on any haircut on domestic debt with the IMF, the government must discuss the matter with the IMF again and do the necessary amendments.