Siyambalapitiya assures P’ment no haircut on domestic debt

Wednesday, 21 June 2023 00:38 - - {{hitsCtrl.values.hits}}

State Minister of Finance Ranjith Siyambalapitiya

State Minister of Finance Ranjith Siyambalapitiya yesterday told Parliament that there will be no haircut on domestic debt.

He said ruled out the much speculated haircut and assured that no injustice would be caused to depositors, EPF, ETF beneficiaries or Pension funds due to domestic debt restructuring. He said that debt restructuring does not mean only haircut and that domestic debt restructuring could involve debt moratorium or cutting down on the 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,” Siyambalapitiya said in response to a question raised by SJB MP Nalin Bandara that the country would have to face serious repercussions if the 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.