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Unions oppose govt. move to ‘tamper’ with workers’ superannuation funds
Social security and welfare fund, valued at US$14.63 billion, is in precarious position, says labour activist
Lankan trade unions and labour activists have urged workers to unite and prevent the government’s attempt to undermine the nation’s largest social security and welfare fund amid concerns over economic hardships due to the island nation’s debt crisis, UCAN has reported.
Anton Marcus, joint secretary of Sri Lanka’s Free Trade Zones and General Services Employees Union, said the fund, representing nearly 2.5 million people and valued at 4.9 trillion rupees (US$14.63 billion), is in a precarious position, according the UCAN report.
“There have been several attempts to misuse or take control of this fund under various pretexts, and the latest Cabinet decision has caused concern and unrest among private and semi-public sector employees,” Marcus, a Catholic, said in a press conference on Aug. 4.
The left-wing National People’s Power (NPP) government of President Anura Kumara Dissanayake defended the Cabinet’s decision.
Deputy Labour Minister Mahinda Jayasinghe told parliament on July 24 that the government aims to improve efficiency and member benefits of the Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF), and has undertaken a study, the first in decades.
But Media reports said the Cabinet has already approved amendments to the EPF Act of 1958, amid growing concerns among its members about changing social, economic and technological conditions in employment.
Marcus alleged that the labour ministry had submitted the tripartite proposal to the Cabinet without informing the National Labour Advisory Council, the primary tripartite consultative body for cooperation between the government, worker organizations, and employer federations on national labor policies and international labor standards.
The workers remain wary, recalling past attempts by successive governments to misuse the fund, he said.
Marcus recalled the Rajapaksa government’s 2011 attempt to interfere with the fund under the guise of introducing pensions for private-sector workers had prompted trade unions and workers to launch a nationwide protest campaign.
“Workers from the Katunayake Free Trade Zone joined unions in a massive protest, forcing the Cabinet to withdraw the proposal, but police opened fire on the protesters, resulting in the tragic death of young worker Roshen Chanaka and leaving nearly 100 workers injured,” he said.
The island nation’s economic crisis, since the first-ever sovereign debt default in April 2022, has caused heavy reliance on international borrowing. This led to critical shortages of food, fuel, and medicine, alongside massive public protests.
As of early 2026, Sri Lanka’s central government gross public debt stands at $98.97 billion, including $37.47 billion in external debt, as the country restructures debt under its $2.9 billion IMF program.
The EPF and ETF provide workers financial security through retirement savings, housing and medical withdrawals, welfare benefits, migration, disability and marriage-related assistance, plus support for major surgeries, hospitalisation, death and workplace injuries.
Nissanka Sadun, a Christian working as a manager at Katunayake Free Trade Zone, said the latest Cabinet decision has left employees worried about protecting their savings and retirement security.
“The comrades who protested with us against the previous government’s attempts to misuse workers’ security funds are now ministers, but their government is trying to misuse the same fund differently,” Sadun told UCA News on Aug. 5.
Sarojani Pathirana, 52, who has worked at a private company in Wattala for 28 years, said her EPF and ETF savings are her family’s only financial security, like several thousand other families.
“Workers depend on EPF savings for housing loans, medical emergencies and partial withdrawals before retirement,” Pathirana, a Buddhist, told UCA News.
The EPF and ETF are mandatory social security schemes, with EPF contributions coming from employees and employers, while ETF is funded entirely by employers.
Executive Director of People’s Action for Free and Fair Elections (PAFFREL) Rohana Hettiarachchi yesterday (28) said that there were three major concerns regarding the Anti-Corruption (Amendment) Bill 2026. Acknowledging the recent Supreme Court determination, in respect of the above-mentioned Bill, that three of the provisions were not consistent with the Constitution, requiring a special majority in Parliament, with one clause requiring approval by the people at a Referendum, Hettiarachchi said nonetheless PAFFREL had decided to bring their concerns to the notice of President Anura Kumara Dissanayake.
Responding to The Island queries, Hettiarachchci said that PAFFREL sent a letter, dated 24 Sept., to President Dissanayake, regarding the issue at hand.
Petitions against the Bill was heard before a three-judge Bench of the Supreme Court, comprising Justices Shiran Gooneratne, Mahinda Samayawardena and Sampath Wijeratne.
PAFFREL and Transparency International Sri Lanka (TISL) were among the petitioners who challenged the proposed amendments to the Anti-Corruption Act No. 9 of 2023. “We did so in public interest,” Hettiarachchchi said, adding that three major concerns were (i) the breadth of the proposed redaction power and the proposed criminalisation of certain uses of publicly accessible redacted asset declarations, particularly in relation to freedom of expression, and the public’s right to meaningfully receive and impart information (ii) raising of the State or public-corporation shareholding threshold for certain asset declaration obligations from 25% to 50%, as this could exclude officers of State-linked entities in which the State holds less than 50%, in spite of such entities exercising public functions and managing public resources and (iii)role of the Director General Ranga Dissanayake.
Hettiarachchchi emphasised that though the PARREL appreciated the way CIABOC DG handled his responsibilities, centreing of power on one person was not acceptable.
Hettiarachchi urged President Dissanayake and the 159-member government parliamentary group to pay attention to concerns raised by those who moved court against the controversial Bill and address their concerns though the Parliament received the SC determination.
An International Monetary Fund mission that visited Colombo recently warned that the proposed amendments could weaken the country’s anti-corruption framework.
The mission, led by Evan Papageorgiou, was in the country from 10 to 23 September for discussions on the seventh review of the Extended Fund Facility and the 2026 Article IV consultation. (SF)
The Supreme Court yesterday (28) dismissed two petitions filed by retired Flight Lieutenant Shantha Jayathilake against Deputy Inspector General of Police of the Criminal Investigation Department (CID) Shani Abeysekara and Secretary to the Ministry of Public Security Ravi Seneviratne, and Rev. Father Cyril Gamini, alleging them of committing contempt of court.
They were the first cases dealt by the Supreme Court after the enactment of the 22nd Amendment to the Constitution.
The recipient of gallantry medal alleged that contempt of court had been committed through an affidavit previously submitted to the Supreme Court by Shani Abeysekara and Ravi Seneviratne.
The other petition alleged that contempt of court had been committed through the contents of a complaint submitted to the Criminal Investigation Department by Rev. Father Cyril Gamini.
The Supreme Court ordered that both petitions be dismissed without being taken up for hearing.
The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) yesterday (28) named former Minister and leader of the SLPP parliamentary group Namal Rajapaksa as the fourth suspect in the Krrish case before the Colombo Chief Magistrate’s Court.
The MP was named as the fourth suspect in the wake of the arrest and remanding of former Executive Officer and Director of the Krrish Group, Janaki Siriwardena, regarding the payment of Rs. 70 mn to Namal Rajapaksa to facilitate the land transaction. Police arrested Ms. Siriwardena on 24 September and she was remanded till 6 Oct. pending investigations.
The investigation focuses on 4.3 acre land development in the Fort area that began in the 2013-2014 period. Investigations were launched in 2016 by the Yahapalana government, following a complaint lodged by Wasantha Samarasinghe, now a Minister in the current Cabinet.
The Indian company in this controversy is Krrish Transworks Colombo (Pvt.) Ltd .
The CIABOC named Namal Rajapaksa as a suspect in the Krrish case while he was remanded over two cases in respect of Airbus bribery probe. (SF)
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