News
Low income families sidelined despite making 25% down-payment five months ago
Preference given to buyers who made 100% payment
by Suresh Perera
In what was described as “shocking official apathy”, prospective buyers of Sea View Residencies at Lunawa complained that they have been left out in the cold despite making the 25% down-payment plus other “related charges” five months ago to procure a flat.
The 356-unit housing complex was developed by the Urban Settlement Development Authority (USDA) targeting “low and middle income families”, but in what appears to be a mix-up in priorities, those who had the financial strength to make 100% payment upfront were given preference, they asserted.
Applicants who settled the full payment on outright purchases have already moved into occupation, while those who made the required 25% down-payment five to six months ago are still left kicking their heels until a monthly repayment plan on the balance due is worked out by the USDA with a financial institution, they said.
“I made a down-payment of one million rupees plus an additional Rs. 140,000 as “related charges” to acquire a unit under a price range of Rs. 4.56 million to Rs. 5.58 million each. Despite the payment made in February 2021, there’s still no word of the promised repayment scheme being finalized so that I can occupy the flat”, a prospective buyer said.
Apart from the standard “we will get back to you soon” response from a USDA officer handling the project, there’s still no hope of occupying the flat, he noted.
“It’s a double whammy because for the past five months, I have to pay rent on the house I am occupying in addition to servicing the bank facility raised to make the one million rupee down-payment”, he further said.
“It’s so convenient for them to blame their lackadaisical attitude on Covid-19 when they had two full months to sort out the matter before the pandemic situation worsened”, he pointed out.
Even during the travel restrictions in the Western province in May, banks were operational and government officers were supposed to ‘work from home’. However, it appears that USDA officials handling the housing project had been twiddling their thumbs without pushing through the repayment plan, he continued.
He said that it’s a joke to call Sea View Residencies a housing project for “low and middle income families” when those who had the financial capacity to make 100% payment upfront are already occupying the flats, while lesser beings continue to be pushed around.
“That’s correct, we have already given the units to those who have made the payment in full”, says USDA’s Chairman, M. L. Subasinghe Arachchi.
He said the 100% payment factor was based on a Cabinet decision.
Asked about “low and middle income families” who have made the down-payment, but are still kept waiting, he replied, “they can arrange a bank loan, and if necessary, we can give a letter to facilitate it”.
“If we had the collateral to raise millions of rupees as a loan from a financial institution, we wouldn’t have opted for a flat meant for low income families”, a prospective buyer protested.
A USDA officer familiar with the subject said a scheme to work out a monthly repayment facility on behalf of the considerable segment of prospective buyers who had made the 25% down-payment has been forwarded to HDFC Bank.
“We have to submit the deed of the land certified by the Land Registry to finalize the process”, he further said.
“When I made inquiries about the inordinate delay, I was told that the Land Registry had earlier rejected the application because Lunawa (Moratuwa) had been identified by a USDA officer as an area within the purview of ‘Southern Province’ instead of Western Province”, the buyer claimed.
“With such ‘competent’ people around, I cannot imagine how much longer we will be kept waiting to take possession of our flats”, he laughed.
“Anyway, we hope to sort out matters within the next two weeks”, the officer assured.
He admitted that the general practice earlier when selling units in housing complexes specifically meant for low income families was for the government institution concerned to arrange a feasible credit facility through a government financial institution on reasonable interest.
Application forms were initially issued to interested buyers on a non-refundable deposit of Rs. 2,000 each. After shortlisting applicants, interviews were called, where they were assured that after the 25% down-payment on the total value of each unit was made, a credit facility would be arranged through the Bank of Ceylon under a monthly repayment plan at 6.25% per annum.
The applicants were shortlisted on the basis of a monthly household income of Rs. 75,000. The availability of a bank facility was also clearly outlined in letters sent to buyers shortlisted as “eligible applicants” to purchase the flats.
Asked why buyers who made the full payment were given preference, while low income families who sought a repayment plan have been kept waiting for more than five months, the officer explained that some issues that cropped up had to be ironed out.
News
Unions resist tripartite EPF management plan
… warn of dire consequences
A group of trade unions and civil society groups has requested President Anura Kumara Dissanayake to abandon his government’s controversial plan for the proposed tripartite management of the EPF.
The group has told the President: “We strongly object to the government’s plan to transfer the EPF to a tripartite board—jointly promoted by the Employers’ Federation of Ceylon (EFC), International Monetary Fund (IMF) and the International Labour Organisation (ILO)—and to increase the investments of those funds within private equity and debt markets.
“While the EFC and the government jointly project this plan as a ‘modern governance framework’, it poses a serious threat to the EPF’s financial stability, fiduciary conduct, and returns to workers’ life savings, with severe consequences for broader macroeconomic stability. Rather than replacing the corruption existing in the public sector, this tripartite framework paves the way for a corporate takeover of the EPF. Through this, the fund is exposed to unlawful business practices such as insider trading using internal information of EPF investments, conflicts of interest and corporate bailouts of unstable private companies.
“Sri Lanka’s corporate sector has a tremendously negative track record, which you alluded to during your victorious election campaign in 2024. This was recently unravelled by the multi-billion-dollar illicit capital flight through trade misinvoicing, which your administration is now actively working to curb in the imports sector.
“The recent banking sector fraud exceeds Rs. 13 billion; widespread corporate tax evasion destabilised the fiscal position (Sri Lanka Auditor General’s Department Annual Reports) and consequently inflated the tax burden on the general public. The EFC has found it convenient to remain silent about these crimes, possibly assuming that their silence would preserve their social standing. Considering this inherent corruption within Sri Lanka’s corporate sector and its disregard to the living standards of the general public, there is no realistic basis to integrate corporate interests to actively manage the EPF. The corporate sector of Sri Lanka has not developed sufficiently on technical and ethical grounds to safely entrust the largest retirement savings pool in the country. The EPF is a captive fund that has no mechanism for the owners to divest if the management is corrupt. This further increases the possibility of corporate fraud when the management of the fund is jointly held with the corporate sector.
“Furthermore, during the recent public discussion with trade unions, Deputy Minister of Finance Dr. Anila Jayantha pointed out that the domestic debt restructuring (DDR) would inflict a loss of Rs. 600 billion to the EPF. Our independent calculations—formally submitted as an affidavit to the Supreme Court approved by the Federation of University Teachers’ Associations in 2024—reveal that nominal loss alone is Rs. 634.4 billion. When factoring in foreclosed reinvestment returns, the true loss skyrockets to Rs. 1,711 billion, wiping out 48% of the fund’s projected gross income for the 2023 – 2028 period. Under the pretext of safeguarding the banking system, this colossal robbery preserved high yields on government bonds held by commercial banks and high-net-worth individuals, subsequently reaping them astronomical profits. Now, the exact same plunder is rearing its head again disguised as a tripartite committee.”
“The main arguments supporting our resistance and viable alternatives for optimising EPF management directly under the Central Bank of Sri Lanka (CBSL), are outlined below.
“Objections to the government’s tripartite proposal:
1. The “International best practice and conflict of interest fallacies”
The government holds that tripartite management of pension funds is the “international best practice” and that there is a “conflict of interest” in CBSL managing the EPF. They are key pillars justifying government’s tripartite proposal.
These two positions are shockingly misleading given that four of the five largest pension funds in the world, in Norway, Japan, the U.S., and Singapore, are managed directly by state bodies or central banks. Therefore, ‘international best practice’ in pension fund management is the exact opposite of what the government and the IMF are proposing. We hence reject these baseless positions.
2. Corporate captivity and bailouts
It is clear that the EFC is desperately pushing for this proposal at a time of global uncertainty, to cushion the effects of the crisis and maximise gains. Under corporate influence within the proposed tripartite board, the private conglomerates can use the multi-trillion-rupee EPF to continue their unstable commercial operations without having to risk their own capital or savings to do so. This will severely erode the financial stability of the EPF and its returns.
3. Risk of front running
“Because the EPF is a colossal fund, its investment decisions can alter asset prices. This creates immense monetary value for the information generated by its investment decisions. Corporate representatives on the proposed tripartite board will be perfectly positioned to use this information to trade ahead of the EPF (front-running), buying assets cheaply and dumping them onto the EPF at inflated prices for guaranteed corporate gain, resulting in a reduction of returns to the EPF.
4. Unavoidable loopholes
“Presence of a separate group of investment analysts, trade union representatives and government officials within the proposed tripartite structure cannot prevent pre-market corporate access to EPF’s investment decisions. Investment proposals made by the analysts has to be first approved by the proposed tripartite committee, making it impossible to prevent corporate access to insider information on EPF investments.”
News
Two arrest warrants issued for Gnanasara thera
The Colombo High Court and Court of Appeal yesterday issued arrest warrants for the Bodu Bala Sena general secretary Galagoda Aththe Gnanasara in a case involving an alleged statement insulting Islam.
The arrest warrants were issued on Tuesday and Wednesday. The Court of Appeal issued an open warrant two weeks after the court rescinded the presidential pardon granted to the thera when he was serving a six-year term for contempt of court.
The Appeals Court also imposed a travel ban on the monk and ordered that the Controller General of Immigration and Emigration be informed of the restriction.
The case was taken up before Colombo High Court Judge Buddhika C. Ragala. Gnanasara Thera was not present when the case was called.
A medical report was submitted stating that Thera was unwell, while his sureties also failed to appear before court. His counsel, Asoka Weerasuriya, told court that his client wished to bring the case to an early conclusion and that representations had been made to the Attorney General in that regard.
However, after considering the submissions, the High Court judge said he was not satisfied with the medical report submitted on behalf of the accused. The court also noted the failure of the sureties to appear.
The judge subsequently ordered that Gnanasara Thera be arrested and produced before court.The Attorney General filed the case under provisions of the Penal Code, alleging that remarks made by Gnanasara Thera concerning the Holy Quran amounted to an insult to Islam.
News
CA dismisses GR’s writ petition against arrest
A two-member bench comprising Court of Appeal President Justice Rohantha Abeysuriya and Justice Sarath Dissanayake yesterday (1) dismissed a writ petition filed by former President Gotabaya Rajapaksa seeking judicial intervention to prevent his arrest under the Prevention of Terrorism Act (PTA) in connection with the ongoing investigations into 2019 Easter Sunday terror attacks.
The writ petition was rejected in limine.
In the petition, the former President cited Inspector General of Police Priyantha Weerasooriya, Criminal Investigation Department (CID) Director Shani Abeysekera, the Officer-in-Charge of the CID’s Special Investigations Unit and the Attorney General as respondents. The ex-President sought the court intervention after the arrest of former head of the State Intelligence Service (SIS) retired Maj. Gen. Suresh Sallay over the Easter Sunday attacks.
Since then , former Director of Directorate of Military Intelligence (DMI) has been named as a suspect.
Earlier, the Fort Magistrate’s Court imposed a travel ban on him in relation to investigations stemming from allegations made by Asad Moulana in the Channel 4 documentary on the Easter attacks.
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