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Don’t encourage EPF members to utilize holdings for current expenditure: CFL

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The Ceylon Federation of Labour (CFL) has lodged its objections with Labour Minister Nimal Siripala de Silva over the proposed ‘mild’ amendments to the EPF Act urging that the EPF, being the sole retirement benefit available to private sector “is best treated as a closed scheme and workers encouraged to avoid using moneys lying to their credit for current expenditure.”

CFL General Secretary TMM Rasooldeen in a letter to the minister has pointed out that the proposed amendment “cut across the original objective of the Act which was to provide a tax free benefit to individual members on retirement.”

We understand the reasons you mention for reviewing the pre-retirement benefits but we believe your proposal to completely unlock the Fund works against its very viability, he has said.

In 2010 when the then minister proposed that members be allowed to draw on their EPF balances for medical expenses, the CFL declined to support it “as it overlapped with medical facilities provided by the Employees Trust Fund (ETF) unnecessarily draining member balances available at retirement.”

They suggested instead that the ETF widens the scope of its medical benefits to include the EPF as well.

Rasooldeen said the proposed amendment seeks to allow members with Rs.300,000 or more contributions to their credit over a ten year period to withdraw up to 30% of it for undefined purposes. Saying the EPF as a retirement fund earlier permitted withdrawals for housing purposes considered an investment. But the track record of the EPF Housing Loan Scheme with its 40% default rate suggests even this to have been a failure.

“Since the fund balance of the member is offered as a guarantee to banks and released to cover defaults, it affects member balances in the long term. The CFL has always felt that the pressure to withdraw funds prior to retirement should be resisted by authorities,” he stressed.

“As an organization that stands for secure and strong social protection coverage for workers, we feel the proposed ‘open sesame’ amendment will render a death blow to its already fragile structure. We decline to support them as we are not convinced that they serve the best interests of member-owners of the EPF,” Rasooldeen said..

“Apart from the Parliament of Sri Lanka, it is the owner-members of EPF who have the right to suggest changes to the original objectives of the Fund. The EPF Act does not envisage a role for trade unions. Therefore, it is our firm belief that trade unions in the NLAC (National Labour Advisory Committee) are ill suited to decide on the matter.

“We suggest that a way be found to constructively engage the main stakeholders before effecting the proposed changes to which we object to. We trust you will no doubt appreciate that unions in the NLAC cannot act as proxies to the over 2.5 million who are the owners of the fund.”



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President meets Kuwaiti Prime Minister Sheikh Ahmed Abdullah Al Ahmad Al Sabah

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President Anura Kumara Disanayake, who is currently in the United Arab Emirates to participate in the 2025 World Governments Summit, met with the Prime Minister of State of Kuwait Sheikh Ahmed Abdullah Al Ahmad Al Sabah on Tuesday (11) afternoon .

During the discussion, President Disanayake highlighted Sri Lanka’s improved political and financial stability, emphasizing the expanded potentials in investment and tourism sectors.

Both leaders focused on strengthening trade relations and diversifying markets between the two countries. They also discussed the importance of exploring new strategic initiatives to enhance economic cooperation.

President Disanayake expressed his gratitude to Prime Minister and the State of Kuwait for its support in securing the International Monetary Fund (IMF) loan facility, acknowledging its contribution to Sri Lanka’s economic recovery.

Additionally, the President noted that approximately 155,000 Sri Lankan workers are employed in Kuwait, contributing USD 700 million in annual remittances, which serves as a significant boost to Sri Lanka’s economy.

Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath, accompanied the President on this visit.

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AKD’s attention drawn to ITAK’s threat to demolish Tissa Raja Maha Viharaya

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Sarath Weerasekera

By Shamindra Ferdinando

Former Public Security Minister Rear Admiral (retd.) Sarath Weerasekera yesterday said that it was the responsibility of the NPP government to ensure the safety of Tissa Raja Maha Viharaya, Kankesanthurai.

President Anura Kumara Dissanayake holding the defence portfolio in addition to being the Commander-in-Chief of the armed forces should look into the developing situation, the retired Navy Chief of Staff said.

The ex-lawmaker was responding to Illankai Thamil Arasu Kadchi (ITAK) leader S. Sritharan’s threat to demolish the Tissa Raja Maha Viharaya unless the government handed over the premises to owners of the land acquired over the years to build the Viharaya.

The warning issued at a media conference held at the Jaffna Press Club recently should also draw the immediate attention of the Parliament, Weeraselera said, stressing that the ruling party as well as other political parties represented in parliament couldn’t turn a blind eye to what he called an explosive development.

Declaring that the ITAK had the backing of the north-based EPDP and TNPF, the ITAK chief has vowed to launch a protest against viharaya and to take over the premises.

Weerasekera said that Public Security and Parliamentary Affairs Minister Ananda Wijepala should take immediate measures to prevent build-up against Tissa Raja Maha Viharaya.

According to him, during his tenure as the Chairman of Oversight Committee on National Security he inquired into the situation therein and addressed the issues at hand. Therefore, the ITAK and other Jaffna-based political parties shouldn’t seek to trigger chaos not only in Jaffna, but in other parts as well.

Responding to another query, Weerasekera, who unsuccessfully contested the last general election on the SLPP ticket, urged the NPP as a political party to take a stand as the north was won by them. The unprecedented defeat suffered by the ITAK at the Nov 2024 general election proved that the vast majority of northerners had rejected separatist agenda pursued by the ITAK etc., and therefore it was trying to incite people, Weerasekera said.

ITAK had conveniently forgotten that it regained the right to represent Tamil speaking people again only after the military had eradicated the LTTE that was recognised by the party way back in 2001 as the sole representative of Tamil speaking people, Weerasekera said, asserting that the planned action against Tissa viharaya could be part of their strategy to regain lost ground in the northern and eastern provinces.

Weerasekera said that the ITAK’s threat reminded him of the violent Pongu Thamil campaign launched in the aftermath of 2002 Ceasefire Accord signed between the then government and the LTTE.

Asked whether he intended to push SLPP to raise the temple issue in Parliament, the former minister answered in the affirmative, saying that all right thinking MPs would oppose the ITAK’s racist move.

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Money laundering case: Travel ban on Yoshitha’s grandmother

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Yoshitha

Police Spokesman SSP Buddhika Manatunga yesterday (11) said that all suspects involved in a money laundering case in which former first lady Shiranthi Rajapaksa’s mother Daisy Forrest Wickremesinghe was under investigation would be prosecuted under the Money Laundering Act.

The Police Spokesman said so after the Kaduwela Magistrate’s Court had imposed an overseas travel ban on Daisy Forrest Wickremesinghe, who is the grandmother of Yoshitha Rajapaksa, in connection with a money laundering case. Former President Mahinda Rajapaksa’s second son Yoshitha is also implicated in the case.

Speaking to the media, SSP Buddhika said that on the instructions of the Attorney General, Mrs Wickremesinghe had been named a suspect in the money laundering case. According to him, the investigations carried out into a Rs. 59 million joint account held by Yoshitha Rajapaksa and Mrs Wickremesinghe, to which Rajapaksa failed to provide a reasonable explanation on the source of earnings.

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