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Labour Minister opposes govt. move to tax EPF, ETF

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By Saman Indrajith

Minister of Labour Nimal Siripala de Silva told Parliament yesterday that the Ministry of Labour was opposed to taxing the Employees’ Provident Fund.

Responding to a question raised by Opposition Leader Sajith Premadasa on the proposed surcharge on superannuation funds, demanding that a gazette, announcing the Surcharge Tax Bill be withdrawn, Minister de Silva said: “My stance on this matter is clear and it has already been announced. The origin of this issue is not the gazette. The Inland Revenue Department has said the income earned by investing EPF and ETF money should be taxed. Yet, our ministry’s position is clear: the EPF and ETF should not be taxed and the position of the Inland Revenue Department is wrong. We have informed the Treasury that this definition should be amended. We have also informed the Commissioner of the Department of Inland Revenue. We informed them of our position months ago,” the minister said.

Opposition Leader Premadasa: I am thankful to the minister for his honesty. The minister has told this House that his ministry is opposed to this. Then, how could the Finance Ministry issue a gazette of this nature?

UNP Leader Ranil Wickremesinghe: We must discuss this matter in the party leaders’ meeting and thereafter we can debate it here to prepare a draft to submit for the approval of Parliament to ensure that both EPF and ETF are exempted from the taxes.

Chief Opposition Whip Kandy District MP Lakshman Kiriella: We demand a debate on this matter. This is fundamentally wrong because this leads to double taxation. An EPF beneficiary would be taxed for the amount of his money. Those receiving EPF face double taxation as a tax is imposed when withdrawing the funds and the Fund will be taxed again on investments. Double taxation is against the law. Therefore, we demand a debate on this matter.

Trade Minister Bandula Gunawardena: It is during the Yahapalana time this new income tax law was passed. It is according to that law these regulations are introduced. You passed the wrong law removing the tax exemptions given to these funds.

Sports Minister Namal Rajapaksa: The new circular in question was issued as per the provisions of the Inland Revenue Act No 24 of 2017. It was your government that brought this Act. It is wrong for you to speak as if you do not know the matter. MP Kiriella demands a debate on the economy stating that he does not know of the prevailing economic situation. In the meantime, he tells in the meetings outside parliament that the economy is collapsing.

Chief Opposition Whip Kandy District MP Lakshman Kiriella: Minister Namal Rajapaksa said that it was as per the provisions of an Act passed during our time that the taxation was introduced. I ask him to read to this House the particular section from that Act enabling taxation. I challenge him to show us such a section. Can you do that?

Minister Namal Rajapaksa: Minister Bandula Gunawardena will read out the particular section to this House tomorrow.

The Chief Opposition Whip: He spoke of a section, but he does not know where it is. He does not know what he spoke of.

Earlier in the day, leader of the opposition Premadasa said the country’s current foreign reserves available for importing goods were only sufficient for three weeks. The government had failed to address the matter in the House. The government had imposed a 25 percent tax on Sri Lanka’s largest fund, the Employees’ Provident Fund, which is worth Rs.3 trillion, which generated a profit of around Rs. 250 billion. The Minister of Finance is attempting to misappropriate funds belonging to the public for implementing the ‘100,000 Projects’ through the Budget’s rural development programme.

He demanded to know whether the government was attempting to misappropriate funds amounting to Rs.65 billion from the EPF.



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Government focuses on developing a unique Food Security Index for Sri Lanka

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The government is currently prioritizing the development of a country-specific Food Security Index, with the goal of completing the initiative within the next three months.

This tailored index is expected to better reflect Sri Lanka’s unique food security landscape, addressing the limitations of global indices such as the Global Food Security Index (GFSI), which have been criticized for failing to capture the nuances of the local context. Policymakers have also noted that existing data is often insufficient or imprecise, making it challenging to develop effective strategies.

The proposed index aims to identify key national priorities and guide food security policy over the next five years.

As a first step in this effort, a workshop titled “Identifying a Suitable Food Security Index for Sri Lanka and Formulating a Strategic Plan” was held on  Tuesday (17) at the Colombo City Center. Organized by the Food Security Expert Committee in collaboration with the Food and Agriculture Organization (FAO) and the World Food Programme (WFP), the event brought together experts and stakeholders from across the sector.

Delivering the opening remarks, Senior Additional Secretary to the President Kapila Gunaratne emphasized the importance of the initiative, stating that the development of a precise, country-specific index is a vital step toward ensuring both economic stability and national food security. The workshop focused on the four key dimensions of food security; availability, accessibility, utilization and stability and explored how these can be incorporated into a comprehensive and practical national index.

Participants included members of the Food Security Expert Committee, such as Senior Professors Buddhi Marambe and Jeevika Weerahewa, along with representatives from various government agencies, academic institutions, the FAO, the WFP and the private sector.

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Opp. MPs stage walkout over Speaker’s bias against them

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Govt. blames them for misbehaviour in Parliament

MPs of the SJB and some other Opposition parties staged a walkout in Parliament yesterday, protesting against the Speaker’s refusal to allow them to discuss the escalating Israel-Iran conflict and its potential impact on Sri Lanka.

The walkout was followed by a special meeting of Opposition leaders, held at the Parliament complex, chaired by Leader of the Opposition Sajith Premadasa. Among those present were MPs Dilith Jayaweera, Namal Rajapaksa, and Dr. Ramanathan Archchuna.

Chief Opposition Whip Gayantha Karunathilleka said that the protest was against the Speaker’s refusal to allocate time for an urgent debate on the Middle East conflict, which Opposition MPs argued poses serious risks to Lankan nationals and businesses, particularly about 10,000–20,000 Lankans currently working in Israel.

Premadasa accused Speaker Dr Jagath Wickramaratne of silencing the Opposition, stating that he had been denied the opportunity to raise a matter of national importance. “We no longer approve of your conduct in this House,” he said, warning that continued disregard for parliamentary procedure would lead to more protests.

Premadasa emphasised the need for immediate government action to ensure the safety of Sri Lankans in the war-torn region and to mitigate economic fallout from the conflict, which, he warned, could escalate into a broader war with possible nuclear implications.

Health and Mass Media Minister and Chief Government Whip Dr. Nalinda Jayatissa assured Parliament that the government would address the issue during an adjournment debate later in the day and that a statement from the Foreign Ministry would follow.

Kurunegala District MP Dayasiri Jayasekara criticised the Speaker for suppressing Opposition voices, adding that the decision to boycott the remainder of the day’s sessions was a direct result of repeated restrictions.

Leader of the House, Transport Minister Bimal Rathnayake rejected the allegations, placing blame on the Opposition for ‘unacceptable conduct within the chamber’.

ITAK Batticaloa District MP Shanakiyan Rasamanickam opted to remain in Parliament and participate in the debate, though he, too, condemned the government’s repeated efforts to curtail the Opposition’s right to speak.

By Saman Indrajith

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Senior SLAS officer succeeds Bogollagama as SL’s UK HC

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Newly appointed HC to the UK Nimal Senadheera signing the visitor's book at the London Buddhist Viharaya

Nimal Senadheera officially assumed duties as Sri Lanka’s High Commissioner to the United Kingdom on Monday, 16 June, at the Sri Lanka High Commission in London. The occasion was marked by a traditional and dignified ceremony.

Senadheera succeeded Rohitha Bogollagama who took over the mission in Nov 2023 during Ranil Wickremesinghe tenure as the President.

Senadheera was warmly welcomed by officials and staff of the Mission. In his address, he highlighted the Government’s vision to strengthen the Mission’s role in advancing Sri Lanka’s interests abroad, reflecting the aspirations of the people and the mandate entrusted to the current administration. He called on all staff members to work collaboratively in further enhancing Sri Lanka–UK relations.

The formal assumption of duties included the traditional lighting of the oil lamp, followed by the serving of milk rice and sweetmeats, in keeping with Sri Lankan customs.

Senadheera is a senior officer of the Sri Lanka Administrative Service (SLAS) with over two decades of experience in public administration, diplomacy, and education. He has previously served at the Sri Lanka High Commission in Pretoria and held senior positions in the Central Provincial Council and the Sri Lanka Institute of Development Administration.

He holds an MSc in Public Policy from the University of Strathclyde (UK), a Master of Public Administration from Flinders University (Australia), and a Master of Arts in Linguistics from the University of Kelaniya (Sri Lanka). He completed his undergraduate studies at the University of Peradeniya, specialising in English, Economics, and Sociology.

Senadheera and his wife arrived in London over the weekend. Upon arrival, they were received by Gordon Wetherell CMG, Special Representative of the Secretary of State for Foreign, Commonwealth and Development Affairs.

Later in the evening, the High Commissioner, accompanied by his wife and staff, visited the London Buddhist Viharaya to invoke blessings as he begins his new diplomatic assignment.

Sujeeva Nivunhella reporting from London

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