News
COPF discusses effect of domestic debt restructuring on EPF
The Sri Lanka Parliament’s Committee on Public Finance (CoPF) has discussed the lack of consent of beneficiaries of the Employment Provident Fund on a planned domestic debt restructuring plan, its chair Harsha de Silva has said.
“…#COPF meeting discussed the #DDO plan but concerns were raised about burden falling on superannuation funds esp #EPF without considering the consent of depositors. Let’s explore this issue,” de Silva said in a twitter.com post.
“While banks were excluded due to existing stress and non-performing loans, the EPF/ETF, which carries most of the burden, faces potential opportunity loss and lacks a say in decisions impacting peoples’ life savings. This raises questions about #equity and #transparency.”
Sri Lanka’s EPF has long been called a ‘captive fund’ where its money’s have been invested in government securities long-term by its manager the central bank which operates inflationary open market operations that trigger forex shortages and depreciation.
Sri Lanka unveiled debt restructuring strategy which involves extending the maturities of the EPF and possibly ETF which will get interest between 12 and nine percent to meet an International Monetary Fund ceiling on maturing and new debt ceiling gross financing need (GFN).
The central bank, in the past printed the GFN (bought maturing debt) triggered currency crises and economists have blamed budget deficits. Bangladesh’s central bank is now buying 25- year maturing debt to trigger external stability and depreciate the Taka.
Sri Lanka now has to meet the GFN targets which the IMF has determined will make debt ‘sustainable’ and grow out the bankruptcy.Current central bank Governor Nandalal Weerasinghe has appreciated the currency from 360 to the US dollar when he took over to around 310/320 raising the real value of the EPF as well as bank deposits.
However, the agency has a high inflation target about two to three times the target of countries with greater monetary stability, and may persuade legislators to rubber stamp it, critics say effectively getting ‘goal independence’.
“We appreciate the tireless efforts of @CBSL and #Treasury officials in stabilizing and reviving the #lka economy,” de Silva wrote.
“However, it’s crucial to address the concerns of superannuation funds #EPF #ETF depositors, ensure consent and explore a more balanced burden-sharing approach.”
The EPF is now taxed at 14 percent, far below banks and the government may hike the tax to 30 percent to those who do not take up the offer, officials have said. (Economy Next)
The situation report issued by the Disaster Management Centre at 1800hrs today (5th December) confirms that 607 persons have died due to the adverse weather conditions while the number of missing persons has reduced to 214.
The number of persons affected topped the 2 million mark (2,082,195).
The Sri Lanka Navy (SLN) formally took delivery of the EX- United States Coast Guard Cutter, USCGC DECISIVE, provided by the United States to SLN, at a ceremony held at the United
States Coast Guard Yard in Baltimore on 02 Dec 25. The event was also attended by the Commander of the Navy, Vice Admiral Kanchana Banagoda.
The ship formally joined the SLN fleet on 02 December under the pennant number P 628 and the main mast of the ship will fly the National Flag effective from that date.
Aiming to strengthen and develop partnerships to overcome common challenges in the maritime domain, the U.S. Coast Guard has previously provided 03 ships to SLN and they are currently patrolling island waters under the names of ‘Samudura’ (P 621), ‘Gajabahu’(P 626), and ‘Vijayabahu’ (P 627).
As an extension of partnership ties that bring value to each other’s services, Ex-USCGC DECISIVE was transferred as the fourth ship to be handed to SLN.
Ex-USCGC DECISIVE, a ‘B-Type Reliance Class 210-foot Cutter’, measures 64m in length, and having endurance of 6000 NM at cruising speed. Further, she has been designed for a
crew of 100 and is equipped with weapons and machinery.
The ship which was used by the U.S. Coast Guard has rendered exceptional service during her tenure by curbing illegal activities, including smuggling of narcotics in U.S. waters.
Sri Lanka inherits an Exclusive Economic Zone (EEZ) that is seven times larger than the landmass. In such a backdrop, the Navy is determined to deploy this vessel in wide-ranging
operations that include the conservation of marine resources in the region and the search and rescue of naval and fishing communities in distress. Thereby, the Navy will be able to utilize
this vessel efficiently in the future to achieve the national aspiration, while ensuring safe and secure seas for all economic affairs.
The formal handing over – taking over ceremony was also distinguished by the presence of the Deputy Chief Acquisition Officer and Director of Domain & Integration Services U.S. Coast
Guard, James L. Knight, Deputy Assistant Secretary of War for South and Southeast Asia, Dr. Andrew Byers, the Ambassador of Sri Lanka to the United States, Mahinda Samarasinghe, Commanding Officer designate of P 628, Captain Gayan Wickramasuriya as well as a group of officials from the Embassy of Sri Lanka in United States and the State Department
of the United State
The situation report issued by the Disaster Management Center at 0600hrs today [5th December] confirms that 486 persons have died and another 341 persons are missing after the devastating weather conditions in the past week.
171,778 persons have been displaced and have taken refuge at 1,231 safety centers established by the government.
Death toll rises to 607, missing persons reduce to 214 at 1800hrs today (5)
Sri Lanka Navy takes delivery of Ex-USCGC DECISIVE
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486 dead, 341 missing, 171,778 displaced as at 0600hrs today [05]
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