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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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Engineers draw red line as CEBEU warns of union action over appointed date

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Engineers at the Ceylon Electricity Board have drawn a clear red line over the government’s plan to gazette the appointed date for restructuring the utility, warning that trade union action will follow if the move is pushed through without addressing their core demands, the Sunday Island learns.

The powerful Ceylon Electricity Board Engineers’ Union (CEBEU) says preparations are already under way for industrial action, most likely after the appointed date gazette is published, should the Minister proceed without resolving outstanding issues raised repeatedly by engineers.

“If the appointed date is gazetted without addressing our demands, we will have no option but to take trade union action,” a senior electrical engineer told The Island, stressing that the warning should be taken seriously.

CEBEU sources say the engineers’ demands are aimed at preventing a structural and financial crisis in the electricity sector, rather than blocking reform. They insist that unbundling the CEB without first putting in place firm safeguards would expose the sector to instability and consumers to higher costs.

The engineers’ key demands include: legally binding financial safeguards to ensure the proposed Electricity Generation Company is viable from inception; protection against the transfer of legacy liabilities, extraordinary costs, or inefficiencies to new entities or electricity consumers; enforceable accountability for management and policy decisions that inflate system costs; genuine, structured consultation with technical professionals before irreversible decisions are taken; and a halt to gazetting the appointed date until these safeguards are formally incorporated.

Engineers warn that rushing the appointed date would lock existing weaknesses into the new structure, making them harder—and more expensive—to fix later. “Once the appointed date is gazetted, there is no rewind button,” a senior engineer said. “If the foundation is flawed, the entire structure will suffer.”

Meanwhile, according to energy analyst, Dr. Vidhura Ralapanwe, electricity sector reforms must be grounded in technical and financial reality, not driven by administrative timelines.

He has cautioned that implementing structural changes without correcting underlying governance and cost issues risks destabilising the sector and undermining public confidence.

CEBEU officials reject claims that the union is resisting reform. They say engineers are being sidelined in decision-making while being held responsible for system performance. “We are accountable for keeping the system running, but our professional warnings are being ignored,” one engineer said. “That is not reform; it is reckless governance.”

With the Minister yet to gazette the appointed date, tensions within the power sector are rising sharply.

Engineers say the government now faces a stark choice: engage with professionals and fix the problems first—or brace for confrontation in a sector where disruption will have coutrywide consequences.

By Ifham Nizam ✍️

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Navam Perahera and sacred relics exhibition at Gangaramaya

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The annual Colombo Navam Maha Perahera, along with an exhibition of sacred relics brought from India, will be held at Gangaramaya Vihara in Hunupitiya, featuring a series of religious observances, according to Most Venerable Dr. Kirinde Assaji Thera.

Addressing a media briefing on Friday, the Venerable Thera said the Perahera will take place on January 31 and February 1, commencing at 7.30 p.m. and concluding before 10.00 p.m., after parading through the streets of Colombo.

He said specially decorated floats have been prepared to depict key historical events, enabling foreign visitors to better understand Sri Lanka’s cultural and religious heritage. The floats will portray significant moments such as the arrival of Arahat Mahinda, the bringing of the Sri Maha Bodhi, and the arrival of the Sacred Tooth Relic, and will be performed by leading local artistes.

The procession is expected to feature around 8,000 dancers and elephants, representing a wide range of traditional dance forms.

The exhibition of sacred relics from the Devnimodara Shrine in India will be held at Gangaramaya Vihara from February 4 to 11. The Venerable Thera urged devotees to visit the temple dressed in white and to refrain from bringing valuables or large items of luggage. He added that necessary facilities have been arranged to accommodate the large number of devotees expected.

Meanwhile, Minister of Buddhasasana, Religious and Cultural Affairs Dr. Hiniduma Sunil Senevi said a mobile application will be introduced to inform devotees of the approximate date and time allocated for venerating the Sarvagna Dhathu, in a bid to manage crowds more efficiently.

Senior DIG in charge of Colombo G. Nishantha de Zoysa said a special security plan has been implemented with the assistance of the tri-forces, in accordance with instructions from the Ministry of Public Security and the Inspector General of Police. He added that a comprehensive traffic management plan, including alternative routes, has been prepared, and that detailed police announcements will be issued shortly. The Senior DIG also advised the public not to carry large luggage, jewellery, mobile phones, or other valuables when visiting the exhibition.

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CID sleuths still plodding on with their probe into controversial Grade 6 English module

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The CID has so far recorded statements from 15 individuals in connection with the Grade 6 English module, police headquarters sources said yesterday.

The CID stated that several officials of the National Institute of Education (NIE), Maharagama, are among those from whom statements have been obtained.

On Thursday, the CID also recorded a statement from Venerable Ulapane Sumangala Thera.

Several parties, including the Secretary to the Ministry of Education, had previously lodged complaints with the CID regarding the inclusion of the name of an inappropriate website in the Grade 6 English module.

by Norman Palihawadane ✍️

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