COPF proposes legislation for minimum returns for EPF members during DDR

• In the current context during the process of debt restructuring, we need  a rate ensured for members reflecting the present inflation
• Nine percent interest rate envisaged by the Central Bank for the EPF  is not for members but for returns on its new  bonds

By Kelum Bandara 

The Committee on Public Finance (COPF) which held extensive discussions with the relevant officials on the Domestic Debt Restructuring (DDR) programme for the last two days proposed to enact a piece of legislation ensuring a minimum return of benefits to the membership of the Employers’ Provident Fund (EPF) during the process.  COPF Chairman Dr. Harsha de Silva, a legislator of the main opposition Samagi Jana Balawegaya (SJB) told Daily Mirror that there is anyway a minimum rate of return ensured for members as announced in 1958.   

 He said, “We don’t want a nominal rate. In the current context during the process of debt restructuring, we need a rate ensured for members reflecting the present inflation.”   

He said nine percent interest rate envisaged by the Central Bank for the EPF under the DDR programme is not for members but for returns on its new bonds.   

At yesterday’s meeting, the government presented the resolution on DDR to be moved in Parliament today. The COPF chairman said the resolution only seeks to empower the finance minister, and therefore he, along with others, asked for the amendment of it reflecting the specifics outlined by Central Bank Governor Nandalal Weerasinghe in his presentation on the DDR programme.  

State Minister of Finance Shehan Semasinghe said the government would amend the resolution accordingly and present it in Parliament today for debate.

• Govt. would amend the resolution accordingly and present it in Parliament for debate