The Proposed Plan by
@cbsl for Sri Lanka's Domestic Debt Optimization/Restructuring received cabinet approval today.

It's quite puzzling to ponder how much of it was truly comprehended by those making the decision, or how such a significant proposal, one that will impact every life in Sri Lanka for the next 15 years, could be passed in just a few hours.
Anyway, here's a brief overview of the plan:
1. Superannuation Funds' T-Bonds: The T-Bonds owned by ETF/EPF and other Private Provident Funds (PPFs) will be restricted. There will be no haircut, but the short-term investment income these funds expected will be pushed down the line.

If these funds do not agree to this, the government may not let them benefit from the 14% special income tax rate. Funds that fail to meet the minimum participation requirement will be taxed at 30%.
2. As the 2nd phase of DDO, T-Bills will be converted to T-Bonds.
3. Domestic entities holding The Sri Lanka Development Bonds (SLDBs) and Foreign Currency Banking Units (FCBUs) have been given USD options similar to the international creditors & 1 LKR option.