News
Eran slams SLPP over move to impose 25% tax on EPF profits
The government has decided in an unprecedented manner to impose a 25% surcharge on the income of the Employees’ Provident Fund (EPF), which has never been taxed in the history of Sri Lanka, and the Opposition is totally opposed to the new tax, says MP Eran Wickremaratne at a press conference held at the Opposition Leader’s Office early this week.
Wickremaratne said that about 1.8 million members of the fund spent what they received as benefits on their family needs after retirement. Mostly employees deposit that money in a bank account and depend on its interest to meet their needs in the evening of their lives. The Yahapalana government decided to pay a maximum of 15% interest on the money in the accounts of these senior citizens with the intention of providing relief to those who have served the country.
Wickramaratne said that the Opposition opposed subjecting the EPF to such a super gain tax of 25 %. “This government seems to be raising issues that the country does not have in the face of crises it faces. During the 2019 Presidential election there was a campaign in the country that there was a bond scam. A Presidential Commission of Inquiry was also appointed for that purpose. The Presidential Bond Commission had recommended that the bond issue should be further investigated effective from 2002.
“Accordingly, the Monetary Board of the Central Bank has decided to conduct a Forensic Audit investigation with foreign experts on the subject. Five-reports were released two years later, on 07 November, 2019, just days before the 2019 presidential election. Within a week of the release of these reports a new President was elected to office and the Good Governance Government was unable to implement its recommendations.
It has been two years since President Gotabaya Rajapaksa was elected, but he did nothing to take action against the culprits mentioned in the forensic report. The government not only did not initiate investigations but also has put it under the carpet enabling it to avoid taking action against the accused on those reports.
The forensic reports state that the irregularities in EPF fund should be carefully investigated. The second volume of the report explains how the EPF money was invested in bonds and the stock market. It has been found that out of the 142 investments made using Rs. 46.95 billion of EPF money, prior approval has not been obtained for 98 investments. There is a committee to approve such investments and it is illegal to make such investments without the approval of that committee.
“All discussions on transactions made by the Central Bank will be recorded. Though the investigators wanted 1163 such recordings related to this provident fund investment for inspections, only 265 recordings have been submitted. Mr. Wickremaratne pointed out that this proves how the authorities have acted to cover up the theft of transactions.
“Furthermore, EPF has been paid a lower interest rate than the average market value. Investments have also been made in companies that are not in the stock market contravening the regulations that covers the EPF. Rs. 500 million has been provided to SriLankan Airlines. This investment from the employees’ money was made in 2010 before the approval of the relevant investment committee and this was a complete loss to the EPF as there was no return on this investment.
“When the forensic auditors asked the then Governor of the CBSL Ajith Nivard Cabraal to answer a questionnaire on bonds and stock market investments made at a loss to the EPF, the then Governor Cabraal avoided any response and has not responded to a request even for a meeting”, he said.
Wickremaratne accused the present government of protecting the Bond scammers by hiding the five forensic reports on the Bond scam under the carpet.
By Shamindra Ferdinando
Iran has sought the Indian intervention, at the highest level, to provide lifesaving support to the crews of empty Iranian vessels stranded just outside Sri Lanka’s 12-nautical mile territorial waters off Galle.
Sources familiar with the issue said that Iran had brought the developing situation to the attention of New Delhi as the crews of almost 20 vessels, included Indian nationals. Sources stressed that the group of vessels that unloaded crude oil a couple of months back were now stranded within Sri Lanka’s Exclusive Economic Zone (EEZ).
The US Navy torpedoed an unarmed Iran frigate, returning from India, on 04 March, 2026, about 19 nautical miles off the Galle coast. The unprovoked attack killed nearly 100 Iranians.
The Iranian Embassy in Colombo has inquired from the Indian High Commission of their response to the situation, sources said. The US has issued a global warning against providing food, water, medicine and other services to the Iranian vessels. The outcome of Iran-India talks on the issue at hand was not known, though sources asserted India may not throw its weight behind Iranian efforts to address the issue.
Responding to The Island queries, sources said both Sri Lanka and India were in a dilemma due to the US warning. India couldn’t ignore the plight of the Indian crew members and the Iranian vessels in its backyard.
The Sri Lankan government remains tight-lipped about the vessels stranded in its EEZ. Our efforts to elicit a response from relevant authorities were in vain. In addition to Indians, there are Bangladeshis among the crew members. Iran has explicitly stated the responsibilities of the countries concerned to provide assistance in terms of international law.
The Iranian position was articulated by its Ambassador to Sri Lanka, Dr.Alireza Delkhosh, recently. In a special statement, Ambassador Delkhosh emphasised that in terms of the Convention on the Law of the Sea (Article 98) as well as SOLAS and SAR
Conventions, Sri Lanka couldn’t refrain from providing the needs of the Iranian vessels stranded in its EEZ.
SLMC leader Rauff Hakeem lambasted the NPP government in Parliament for failing to provide assistance to the Iranian ships. The former Minister alleged that the government was simply carrying out dictates of the US. He strongly criticised the way Foreign Minister Vijitha Herath was handling the issue.
MP Namal Rajapaksa, who is in remand custody over the controversial Airbus deal, was further remanded until October 27 by the Colombo Magistrate’s Court yesterday (13).
Colombo Chief Magistrate Asanga S. Bodaragama made the order after considering submissions by officers of the Commission to Investigate Allegations of Bribery or Corruption and lawyers representing Rajapaksa.
Sri Lanka’s economy is expected to sustain its recovery over the next two years, although growth is projected to moderate amid mounting global uncertainties, according to the International Monetary Fund’s (IMF) latest World Economic Outlook.
In its World Economic Outlook 2026: Resilience Under Strain, Urgent Choices, the IMF projects Sri Lanka’s economy to expand by 4% in 2026, slowing to 3.7% in 2027, following estimated growth of 5% in 2025.
Inflation, meanwhile, is forecast to rise to 5.3% in 2026 and 5.4% in 2027, reversing the average deflation rate of 0.5% recorded in 2025.
Unemployment is expected to remain steady at 3.9% throughout the forecast period.
The projections come amid growing pressure on the global economy from the ongoing conflict in the Middle East, elevated energy prices, geopolitical tensions and trade disruptions.
Sri Lanka’s external position is also expected to weaken, with the current account balance projected to shift from a surplus of 1.6% of gross domestic product (GDP) in 2025 to deficits of 0.5% in 2026 and 0.3% in 2027.
The IMF’s outlook points to continued economic expansion in Sri Lanka, but with slower growth, rising inflation and a narrowing external surplus giving way to current account deficits over the forecast period.
Heavy showers above 100 mm are likely at some places in the Western, Sabaragamuwa, Southern, Central, and North-western provinces and in Anuradhapura district.
Sri Lanka, India caught in US-Iran ship crisis
Namal further remanded
IMF projects Lankan economic growth to moderate amidst mounting global uncertainties
Major Gen Pushpakumara assumes command of 56 Infantry Division
Dickwella axed, Bandara earns maiden Test call up
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