AKD warns of impending threat to EPF - ETF through domestic debt restructuring

NPP Leader  Anura Kumara Dissanayake

• Accuses Govt. of attempting to cover up thefts by utilising EPF and ETF monies
• Warns domestic debt restructuring could also negatively affect banking system
• Says curtailing monetary benefits of private sector employees will constitute a national crime

National People’s Party (NPP) Leader Anura Kumara Dissanayake yesterday claimed the Employees’ Provident Fund and Employees’ Trust Fund are now under threat as a result of the Government’s attempt to restructure domestic debt.

The MP said the EPF and the ETF have lent close to Rs. 3 trillion to the Government making them its main domestic lenders.

“They are now attempting to use the monies in the EPF and ETF to cover its various thefts,” he accused. The MP noted that according to the agreement between the International Monetary Fund (IMF) and the Government, the country’s foreign debt, particularly international sovereign bonds and bilateral debt is seemingly being restructured. “But now a discussion on domestic debt restructuring has emerged,” he said.

The MP claimed that the Central Bank of Sri Lanka, the People’s Bank, the Bank of Ceylon and the EPF are the main lenders to the Sri Lankan Government. “If the domestic banking system has to face restructuring at this juncture according to this debt restructuring program, the banking system, which is already suffering from a large liquidity deficit, will be at significant risk. Therefore, the Government should pay more attention to the possible dire consequences of commercial banks and financial companies in the restructuring of domestic debt,” he warned.

“They contain funds of workers in the private sector. It is a national crime to curtail the benefits of private sector employees as these are considered their sole mode of financial protection. Therefore if the Government depletes these funds or covers up the various corruptions by utilising these monies it will be a national crime,” he said.