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Monday June 3rd, 2024

Sri Lanka to pay Rs 5 Bn in pending EPF, ETF to state plantation workers

ECONOMYNYEXT — The cabinet will present a paper for the state to pay five billion rupees in pending Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF) to employees of state-sector plantation companies, an official said.

State Minister of Finance Ranjith Siyambalapitiya said employees of state-owned plantation companies have not paid EPF and ETF to their employees for 20 years.

“Some did not have the money to buy medicine and died. There are 2,000 court cases filed by these people. Some are still waiting,” he said, speaking at an event on Sunday April 28.

“A cabinet paper will be submitted this Monday to pay this entire amount by the government this year,” he said.

Meanwhile, the government is also working on a new management authority for the plantation sector.

“We’re also looking to build a management authority to better manage the work of plantations,” said Siyambalapitiya.

The state minister also said that the state-managed EPF will pay a 13 percent return to all its member in 2023.

The government has decided to pay the return from the earnings the fund made in 2023, he said.

It was higher than the 9.0 percent return the EPF had paid in recent years, Siyambalapitiya said.

The EPF was at the centre of a controversy a few months earlier with opposition parties and activists claiming that the fund would be negatively impacted by Sri Lanka’s domestic debt restructuring efforts.

However, the Central Bank, which oversees the fund, said the claims were exaggerated if not logically unsound.

Sri Lanka re-structured the debt of the EPF, extending maturities and initially raising the coupon the 12 percent, after the central bank busted the currency from 200 to 370 destroying its real value and pushing inflation to 70 percent.

However, over the past year, the central bank has appreciated the currency, recouping the fund some of its losses.

According the Central Bank, the inflation generating state enterprise that manages the fund, liability to members went up by 12.9 percent to 3,817.9 billion rupees in 2023, while the total value of the fund went up 11.5 percent to 3,857.4 billion rupees.

There has been hardly any inflation (as measured by the most widely watched Colombo Consumer Prince Index) since September 2022, when monetary stability was restored. (Colombo/Apr29/2024)

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Water levels rising in Sri Lanka Kalu, Nilwala river basins: Irrigation Department

Sri Lanka Navy assisting in rescue operations (Pic courtesy SL Navy)

ECONOMYNEXT – Sri Lanka’s Irrigation Department has issued warnings that water levels in the Kalu and Nilwala river basins are rising and major flooding is possible due to the continuous rain. People living in close proximity are advised to take precautions.

“There is a high possibility of slowly increasing prevailing flood lowline areas of Kiriella, Millaniya, Ingiriya, Horana, Dodangoda, Bulathsinhala, Palinda Nuwara and Madurawala D/S divisions of Ratnapura and Kalutara Districts, up to next 48 hours,” it said issuing a warning.

“In addition, flood situation prevailing at upstream lowline areas of Ratnapura district will further be prevailing with a slight decrease.

“The residents and vehicle drivers running through those area are requested to pay high attention in this regard.

“Disaster Management Authorities are requested to take adequate precautions in this regard.”

The island is in the midst of south western monsoon.

DMC reported that 11,864 people belonging to 3,727 families have been affected due to the weather in Rathnapura, Kegalle, Kilinochchi, Jaffna, Mullaitivu, Kalutara, Gampaha, Colombo, Galle, Matara, Hambantota, Puttalam, Kurunegala, Kandy, Nuwara Eliya, Anuradhapura, Polonnaruwa, Badulla, Moneragala, and Trincomalee districts.

Meanwhile, the Meteorology Department stated that showers are expected on most parts of the island today.(Colombo/June3/2024)

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UNP gen secy defends call for postponing Sri Lanka poll, claims opposition silent

The UNP party headquarters in Pitakotte/EconomyNext

ECONOMYNEXT — United National Party (UNP) General Secretary Palitha Range Bandara has defended his call for postponing Sri Lanka’s presidential election by two years, claiming that his proposal was not undemocratic nor unconstitutional.

Speaking to reporters at the UNP headquarters Monday June 03 morning, Bandara also claimed that neither opposition leader Sajith Premadasa nor National People’s Power (NPP) leader Anura Kumara Dissanayake have spoken against his proposal.

“I have made no statement that’s undemocratic. My statement was in line with provisions of the constitution,” the former UNP parliamentarian said.

He quoted Section 86 of Chapter XIII of the constitution which says: “The President may, subject to the provisions of Article 85, submit to the People by Referendum any matter which in the opinion of the President is of national importance.”

Sections 87.1, 87.2 also elaborates on the matter and describes the parliament’s role, said Bandara.

“I spoke of a referendum and parliament’s duty. Neither of this is antidemocratic or unconstitutional. As per the constitution, priority should be given to ensuring people’s right to life,” he said.

“Some parties may be against what I proposed. They may criticse me. But what I ask them is to come to one position as political parties and make a statement on whether they’re ready to continue the ongoing economic programme,” he added.

Bandara claimed that, though thee has been much criticism of his proposal for a postponement of the presidential election, President Wickremesinghe’s rivals Premadasa and Dissanayake have yet to remark on the matter.

“I suggested that [Premadasa] make this proposal in parliament and for [Dissanayake] to second it. But I don’t see that either Premadasa nor Dissanayake is opposed to it. To date, I have not seen nor heard either of them utter a word against this. I believe they have no objection to my proposal which was made for the betterment of the country,” he said. (Colombo/Jun03/2024)

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300 of 100,000 trees in Colombo considered high risk: state minister

ECONOMYNEXT – Trees in Sri Lanka’s capital Colombo are being monitored by the municipal council, Army and Civil Defense Force as the severe weather conditions continue, State Minister for Defense Premitha Bandara Tennakoon said.

“Within the Colombo Municipal Council city limits, there are 100,000 trees. Of these, around 300 are considered high risk,” Tennakoon told reporters at a media conference to raise awareness about the current disaster management situation.

Not all trees required to be cut down he said. “We can trim some of the branches and retain them.”

The problem was that buildings in the vicinity of the tree had cut branches on one side, causing it to become unbalanced, the minister said.

New laws would be brought in so provincial/municipal institutions could strengthen enforcement of building codes.

“We don’t have a single institution that can issue a warning about a tree. Not one to tell us what trees can or cannot be planted near a road.

“Trees should be suitable for the area. Some trees have roots that spread and damage roads, buildings. When the roots can’t go deep, they tend to topple over.

“Now Environment Day is coming up, and anyone can go plant a tree by the road. We have to take a decision about this. We have to enforce laws strongly in future.” (Colombo/June3/2024)

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