Unions resist tripartite EPF management plan
… warn of dire consequences A group of trade unions and civil society groups has requested President Anura Kumara Dissanayake to abandon his government’s controversial plan for the proposed tripartite management of the EPF. The group has told the President: “We strongly object to the government’s plan to transfer the EPF to a tripartite board—jointly […]
Trade unions and civil society groups have urged President Anura Kumara Dissanayake to reject the government's plan for tripartite management of the EPF, warning of severe consequences. The unions argue that the proposed board, comprising the Employers' Federation of Ceylon (EFC), the International Monetary Fund (IMF), and the International Labour Organisation (ILO), will threaten the EPF's financial stability, fiduciary conduct, and returns to workers' savings.
They claim this would allow corporate takeover of the EPF, exposing it to unlawful practices such as insider trading, conflicts of interest, and corporate bailouts. The unions highlight Sri Lanka's corporate sector's history of corruption and disregard for public welfare, suggesting that integrating corporate interests into EPF management is unrealistic.
They also point out that the EPF lacks mechanisms for owners to divest if management becomes corrupt. The unions further claim that the government's DDR would result in a loss of Rs. 634.4 billion, with foreclosed reinvestment returns increasing the loss to Rs. 1,711 billion – wiping out 48% of the fund's projected income. They argue that the tripartite committee would enable corporate representatives to use the EPF's investments for personal gain, creating a front-running risk.
Written by urgent.news from The Island Sri Lanka's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
