Gevindu asks whether SC action influenced govt. decision to increase EPF interest

SLPP National List MP Gevindu Cumaratunga and member of Uththara Lanka Sabhagaya has asked whether moving of the Supreme Court to seek equal treatment to all members of the Employees Provident Fund (EPF) influenced the government’s decision to increase the interest paid to members from 9% to 13% for 2023.

Addressing the media at Dharmayathanaya, Baudhaloka Mawatha, MP Cumaratunga said that though he felt the government could have granted even a better interest rate, the decision was genuinely appreciated. The MP noted that the amount was higher than what was promised in Parliament.

The first time entrant to Parliament said that the SC recently announced that the case would be taken up on May 20. Cumaratunga, who is also the President of Yuthukama National Organisation, moved the SC in terms of Article 126 read with Article 17 of the Constitution.

MP Cumaratunga alleged that while increasing the interest granted to those who had received 9% to 13 percent, the EPF interest paid to Central Bank employees’ was believed to have been higher. However, that amount was significantly lower than what was offered to CBSL employees for 2022.

The apex court’s intervention has been sought on the basis that EPF members were paid 9% interest for 2022 in terms of the EPF Act No 15 of 1958 whereas members of the Central Bank Provident Fund received 29.27% in the same year. However, with regard to Employees Trust Fund (ETF), there hasn’t been any discrepancy with all members receiving 8.75% in 2022.

Lawmaker Cumaratunga has told the SC that after an inordinate delay State Finance Minister Shehan Semasinghe on Nov 07, 2023 disclosed the difference in interest payments made to EPF members elsewhere and those working at the Central Bank. According to the civil society activist, the questions regarding EPF interest and related matters were submitted to Parliament in July 2023.

The petition named the Central Bank as the first respondent, followed by the Governor of the Central Bank, Attorney General, State Finance Minister and Commissioner General of Labour as respondents.

The petitioner requested the SC among other matters to transfer /credit Rs 21,000,000,000 that had been wrongly transferred to the Profit Equalization Fund, to the profit available for distribution and transfer/credit Rs 29,000,000,000 from the profit Equalization Reserve for profit available for distribution. The petitioner pointed out that this would enable the recalculation and revising of interest payable to each EPF member at 11 % or above for 2022. The petitioner also requested that the interest paid to Central Bank members of the fund should be re-fixed at an equitable rate as deemed by the SC (SF)