• Notes lack of inde. body to regulate Fund & conflict of interest with CBSL purview 
• Seeks transparency of secondary mkt. investments   

The Employees' Provident Fund (EPF) has been abused and misused by every successive government, said the Tamil National Alliance Opposition Parliamentarian, President’s Counsel M.A. Sumanthiran, who presented an amendment to the EPF Act yesterday (8) in Parliament.

Speaking in the Parliament, MP Sumanthiran noted that the Government has neither responded to nor taken any action to implement the recommendations submitted by the International Monetary Fund (IMF) in their governance diagnostics that there must be an independent body to regulate this Fund. 

“I have presented today an amendment to the EPF Act. This is the workers’ measly savings. In the private sector, they only have this when they retire. Successive governments see it as an opportunity to deprive them of their just dues by using the fact that it is the Central Bank of Sri Lanka (CBSL) that is the custodian of this Fund. There is a huge conflict of interest, which the IMF has also highlighted and recommended in their governance diagnostics that there must be an independent body to regulate this Fund. The Government has neither responded to this recommendation nor taken any action,” he stated. 

MP Sumanthiran further noted that the amendment has been brought by him to make it transparent to disclose all the transactions that have taken place, particularly the investments that are being done in the secondary market.

“This is so that, in a timely manner, the country can be aware of the fraudulent deals. We don’t know, even to date, the exact extent of the damage caused by the Treasury bond scams of 2015 to the EPF. This amendment will disclose how fraudulent deals are being made between primary dealers and those who administer this Fund,” he added.

Several attempts made to contact the State Minister of Finance, Ranjith Siyambalapitiya and the CBSL proved futile.