Hon. Ravi Karunanayake

¶ 01 Hon. Speaker, in terms of Standing Order 27(2), in view of a public statement made by a Deputy Minister on 2026.01.07 regarding steps proposed to convert the lump-sum gratuity paid under the Employees’ Provident Fund (EPF) into a monthly pension, I raise this Question expecting an urgent statement from the Government.

¶ 02 This announcement has caused serious unrest among employees, pensioners and trade unions. It revives a sensitive policy debate that, in 2011, led to the tragic death of Roshen Chanaka and was withdrawn amidst nationwide agitation.

¶ 03 Today, the combined assets of the EPF and the Employees’ Trust Fund (ETF) exceed Rs. 6.2 trillion — larger than the Colombo Stock Exchange. Unilateral structural changes made without transparency or stakeholder consent imperil individual property rights and the stability of the country’s financial system.

¶ 04 I ask the Hon. Minister of Finance the following:

¶ 05 1. What specific socio-economic factors have prompted this sudden policy change? Has any agreement under the IMF programme influenced this?

¶ 06 2. Since mid-2025, what actuarial studies and Cabinet-level discussions have been undertaken on this proposal? Will these be presented to Parliament?

¶ 07 3. Has the Government conducted a comparative analysis between (a) a lifetime pension and (b) the current scheme, which returned 13% in 2023?

¶ 08 Hon. Speaker, you are aware that, due to an unilateral decision by the Central Bank to declare bankruptcy without Parliamentary sanction, billions of rupees in compensation had to be paid from the EPF. Are we now returning to such pitfalls?

¶ 09 4. How does the Government reconcile its earlier opposition to such reforms? What measures have been taken to prevent a recurrence of incidents like those in 2011?

¶ 10 5. Why is priority not given to integrating the EPF and ETF into an independent consolidated fund governed by a depoliticized Board?

¶ 11 6. What legal safeguards ensure that this Rs. 6.2 trillion asset base will not be used to finance Government debt or deficits?

¶ 12 Is this not like trying to sell the gold of the Kataragama Devale — an unnecessary act?

¶ 13 7. Will the existing facility allowing up to 30% pre-retirement withdrawals for housing and medical needs remain unchanged?

¶ 14 8. Before any gazette is issued, will the Government agree to a transparent, timely consultative process with trade unions and union federations?

¶ 15 Hon. Speaker, I believe Members such as Vasantha Samarasinghe, Bimal Rathnayake, Nalinda Jayatissa and Saroja Savitri Paulraj would never support such a move. If so, why was this statement made? We seek direct answers today.