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MP drops bombshell over EPF discrepancy, demands immediate remedy

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MP Gevindu Cumaratunga

…. asks whether IMF is blind

By Shamindra Ferdinando

Dissident SLPP MP Gevindu Cumaratunga faults Parliament for continuing to allow a special category of EPF (Employees’ Provident Fund) recipients, created since 2022, regardless of the matter being brought to the attention of Parliament.

Addressing the media at Sri Sambudhathva Jayantha Mandiraya, Cumaratunga said that in spite of the public finance being under the control of Parliament, the Wickremesinghe-Rajapaksa government had allowed an unprecedented discrepancy in what he called beneficial interest rates received by members of the Central Bank Provident Fund.

Pointing out that in the year 2022, all EPF members had been given 9% interest, whereas CB employees received a staggering 29.27%, MP Cumaratunga alleged that the Parliament had hindered his efforts to compel the Finance Ministry to admit the truth in Parliament.

The leader of the Yuthukama civil society group said that his question, pertaining to the EPF, that was raised on 10 July, 2023 received an answer only on 07 Nov. On behalf of the Finance Ministry, State Minister Shehan Semasinghe had admitted that those of the Central Bank Provident Fund were paid 29.27% whereas the rest received 09%, MP Cumaratunga said. Both EPF funds are managed by the Central Bank.However, State Finance Minister Semasinghe had failed to explain how Central Bank employees received an interest three times higher than other EPF beneficiaries, MP Cumaratunga said. Responding to a query by The Island, the MP said that though he raised the issue in Parliament, on July 10, 2023, the government and the Opposition were fully aware of the EPF issue.

Instead of taking remedial measures in this regard, the Parliament passed the Domestic Debt Optimization (DDO) plan on July 01, 2023, thereby legitimised the flawed EPF interest payment scheme. The MP said that the ruling SLPP voted for the controversial resolution that was adopted with a majority of 60 votes. The resolution received 122 votes in favour whereas 62 voted against. Forty one MPs skipped the vote.

Much of the 10-hour debate, on July 1, 2023, centred on how the DDO process impacted on the EPF and ETF (Employees Trust Fund).

Cumaratunga said that the Governor of the Central Bank Dr. Nandalal Weerasinghe had recently given Uthara Lanka Sabhagaya (ULS) an opportunity to discuss the matter at the Governor’s Secretariat. On behalf of the grouping, represented mainly by dissident MPs elected and appointed on the SLPP lists, MP Cumaratunga accompanied by Ven. Athureliye Rathana Thera met Dr. Weerasinghe and senior officials of the CB.

He said that during the discussion the Central Bank had assured that the information requested by the Finance Ministry, pertaining to the question the lawmaker raised in Parliament, had been furnished without delay. The top political leadership should take responsibility for causing the delay in answering the question, even though the Central Bank responded to the request made by Additional Secretary, Finance Ministry, in a letter dated July 27, 2023, Cumaratunga said. The official has requested the information before Aug 10, 2023, according to the MP. This transpired during the discussion the MPs had with Dr. Weerasinghe.

MP Cumaratunga said that before calling the media briefing he had examined past Central Bank reports, going back over ten years. President Wickremesinghe who also functions as the Finance Minister, owed the country an explanation so do State Finance Minister Shehan Semasinghe, MP Cumaratunga said.

In 2020 and 2021, the EPF members received 9% interest whereas Central Bank employees were paid 6.37% and 8.24%, respectively. The inflation had been 4.6% in 2020 and 6% in 2021 whereas interest rates were relatively low, MP Cumaratunga said.

But in 2022, when an explosive combination of issues caused unprecedented economic-political-social turmoil, the government increased interest rates. Pointing out that inflation rose to 46.4%, MP Cumaratunga said that EPF remained at a paltry 9% while Central Bank employees were granted significantly bigger – 29.27%. “This couldn’t be justified under any circumstances.”

Responding to another query, Cumaratunga said that Parliament should have addressed the issue promptly. “We are aware that the Central Bank employees are entitled to pensions whereas the vast majority of those who received just 9% beneficial interest didn’t have anything else to depend on after retirement.”

Cumaratungar said that Parliament at least now should intervene in this matter. Cumaratunga pointed out that though ordinary EPF members had been paid just 9% in 2021 and 2022, according to Central Bank records, there was a significant increase in profits in 2022 compared with the previous year. While 2021 investments had brought in Rs 293 bn profit, 2022 recorded Rs 349 bn in profits, the MP said.

Cumaratunga called for a thorough examination of all data as the biggest margin between interests paid to EPF and members of the Central Bank Provident Fund had been 1.7% in the recent past. That was in 2018 when EPF was paid 9.5% while Central Bank employees received 11.2%, the MP said.

Declaring that he had no faith in IMF remedies, MP Cumaratunga said that if the funding agency had been genuinely concerned about bankrupt Sri Lanka it could intervene in this matter, too, as it pressed the government to go all out to meet revenue targets.



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Senior citizens above 70 years to receive March allowances on Thursday (26)

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The Welfare Benefits Board has announced that the March allowance for senior citizens over 70 years of age will be credited to each beneficiaries account on Thursday (26th).

693,801 senior citizens over the age of 70 years are set to benifit under this welfare scheme

 

 

 

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CEB Engineers warn public to be prepared for power cuts after New Year

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A looming power crisis is casting an ominous shadow over the country, with engineers warning that the current “no power cut” situation may not last beyond the Sinhala and Tamil New Year due to worsening diesel shortages and ongoing coal-related disruptions.

A senior electrical engineer, attached to the Ceylon Electricity Board Engineers Union, cautioned that while authorities appear to be managing the system for now, the underlying fuel constraints are reaching a critical point.

He told The Island: “At the moment, there are no scheduled power cuts across the country. But this is being maintained under significant strain. With the diesel shortage and unresolved coal issues, sustaining uninterrupted supply, beyond the New Year period, will be extremely challenging.”

The engineer noted that thermal power generation — particularly diesel-based plants — has become increasingly difficult to sustain due to limited fuel stocks and logistical bottlenecks. At the same time, the substandard quality coal supply issues that have plagued recent shipments continue to undermine the efficiency of base-load generation.

“We are stretching available resources to avoid immediate outages. owever, unless there is a rapid improvement in fuel availability, the system will be forced into load shedding soon after the New Year,” he warned.

According to him, authorities are likely to delay any scheduled outages until after the festive season to avoid public backlash and economic disruption during a traditionally sensitive period.

“Most probably, they will try to continue like this until the New Year. But after that, daytime or peak-time load shedding becomes almost inevitable if the situation remains unchanged,” he added.

Energy analysts say the warning reflects a deeper structural vulnerability within the power sector, where over-reliance on imported fossil fuels — particularly diesel and coal — continues to expose the system to external shocks and procurement failures.

The recent use of substandard coal has already resulted in reduced generation capacity at the country’s sole coal power plant at Norochcholai, compounding the pressure on thermal plants to bridge the shortfall. Engineers say this has forced operators to depend more heavily on costly diesel generation — an option now constrained by supply shortages.

Industry sources indicate that demand is also on the rise, particularly during night peak hours, possibly driven by increased reliance on electricity for cooking, amid gas shortages, further tightening the supply-demand balance.

Despite the absence of official announcements, insiders suggest contingency planning for load shedding is already underway.

“If the fuel situation does not improve within the next few weeks, controlled power cuts will be the only viable option to protect the grid from a total system failure,” the engineer stressed.

The warning comes at a time when the country is attempting to maintain economic stability following successive crises, with uninterrupted power supply considered critical for industry, commerce, and daily life.

However, unless urgent corrective measures are taken to secure reliable fuel supplies and stabilise generation capacity, the return of power cuts — including during daytime hours — appears increasingly unavoidable, an expert said.

By Ifham Nizam

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Japanese boost to Sri J’pura Hospital, an outright gift from Tokyo during JRJ rule

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Japanese Ambassador to Colombo, Akio Isomata, on 24 March, handed over the newly established dental unit and 4D Angio CT suite at Sri Jayewardenepura General Hospital. Health Minister Dr. Nalinda Jayatissa and other senior officials from the Ministry of Health and the hospital attended the event.

Highlighting the strong partnership between Japan and Sri Lanka in the health sector, the Embassy issued the following press release yesterday: “This handover marks the second phase of the project, following the initial provision of ophthalmic equipment in December 2023. The current phase represents a significant milestone, featuring the introduction of a state-of-the-art CT Angiography system – the first of its kind in South Asia – as well as dental units. These contributions are expected to enhance Sri Lanka’s capacity to address non-communicable diseases (NCDs), including cancer, stroke, and diabetes, thereby saving lives, reducing long-term complications, and improving the quality of life of patients.

The CT Angiography system integrates CT scanning and angiography functions, enabling highly accurate and timely diagnosis and treatment. It is expected to further strengthen the hospital’s role as a key medical hub in Sri Lanka and the wider region.

In addition, the provision of 10 dental units will support the establishment and enhancement of dental services at the hospital. In Japan, oral health is considered closely linked to overall health and plays an important role in extending healthy life expectancy. This support is, therefore, also expected to contribute to the promotion of preventive healthcare in Sri Lanka.

The Sri Jayewardenepura General Hospital was constructed in 1984 with grant assistance from the Government of Japan. The well-known “1001-bed” story—originating from former President J.R. Jayewardene’s remark to add one more bed to the originally planned 1,000—remains a memorable episode reflecting the history of this cooperation.

Japan has consistently supported Sri Lanka’s health sector over the decades, including the development of medical facilities, strengthening of blood supply systems, and support during the COVID-19 pandemic through vaccine delivery assistance. Furthermore, during Sri Lanka’s recent economic crisis, Japan provided fuel essential for maintaining healthcare services, and in times of natural disasters, dispatched emergency medical teams to deliver urgent care. These efforts demonstrate Japan’s continued commitment to standing by Sri Lanka, especially in times of need. These efforts reflect Japan’s commitment to “investment in people” and “human security,” supporting a healthcare system in which all individuals can live healthy and dignified lives.

Japanese Ambassador Isomata with Minister Dr Jayatissa and officials (pic courtesy Japanese Embassy)

Ambassador Isomata remarked, “This support is not merely for the provision of equipment, but also for the consolidation of the foundation for safeguarding lives and livelihoods. Sri Jayewardenepura General Hospital, built with the support of Japan, stands as a symbol of the longstanding friendship between our two countries. We sincerely hope that this project will contribute to building a sustainable healthcare system that benefits future generations in the field of medicine and further strengthen our partnership.”

Minister Jayatissa highlighted,” This is not just a donation of machines. It is an investment in the lives and futures of our patients. By establishing this modern dental unit, we are addressing a critical need in the prevention and treatment of oral diseases for our population. I wish to express our deepest gratitude to the Government and people of Japan for this generous assistance. These are acts of true friendship, and the people of Sri Lanka will always remember them with gratitude.”

Japan will continue to work closely with Sri Lanka to further strengthen the healthcare sector and deepen the longstanding friendship between the two countries.”

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