Announcement on ‘debt default’ endangers investments, EPF at risk
With the out-of-the-blue-decision to announce that Sri Lanka has resorted to forex debt default six months ago on April 12, 2022, all investments entitled to the country have been endangered, and despite the risk, the Central Bank of Sri Lanka (CBSL) continues to collect investments from the country’s workforce under treasury bills and bonds through the Employee Provident Fund (EPF), alleged President of the Inter-Company Employees Union and JVP former MP Wasantha Samarasinghe, in a letter addressed to the Employee Provident Fund (EPF) of the Central Bank of Sri Lanka (CBSL).
The net worth of the EPF is currently about Rs. 3.5 trillion and more than 95 per cent of them has been invested on treasury bills and bonds, Samarasinghe disclosed, questioning as to why such investments are being made when the country is officially in a bankrupt status.
The Union Chief urged the CBSL not to make further investments on treasury bills and bonds through the EPF and resort to re-financing over every matured bill and bond instead, warning that otherwise, the CBSL shall be held accountable for endangering the EPF.
He added that they as the workforce of Sri Lanka will take legal actions against the CBSL on both professional and personal capacities, should the country’s monetary regulator continue to collect investments through the EPF.
The former MP, therefore, requested the EPF of the CBSL to grant them a meeting to discuss this matter immediately.