July 24, 2015 (LBO) – Sri Lanka’s Employee Provident Fund should come under a public trust and not allowed to be manipulated by the Central bank, a former deputy minister said.
“This is one of the biggest frauds happening in the country and I have been saying this in parliament for the last five years,” Eran Wickramaratne, a former deputy Minister said.
The Employee Provident Fund of private sector workers is managed by the central bank which also manages government debt.
EPF funds are regularly invested in government debt.
“When the government wants to borrow money it is from these funds that they take it and they want low interest loans while the workers want a high yields for their funds,” Wickramaratne said.
“So who are the winners – is it not the government?”
“Now you see that there is a conflict of interest and a very unfair situation for the workers because after saving for 20-25 years when they are retiring they are saddled with low interest earning savings.” Wickramaratne added.
The UNP’s manifesto released targeting the general election of the August 17th said, if elected they will set up a public trust to manage the provident fund of private sector workers better.
“We are proposing the setting up of a public trust to manage these funds and then the government won’t be able to manipulate it,”
“Then the returns that the workers will be receiving will be protected,”
“The responsibility of the persons in charge of the trust would be to protect the rights of the employees and get the highest possible interest.”