Petition against proposed reduction of EPF interest rates dismissed

The Supreme Court on Friday (11 Aug) dismissed a Fundamental Rights (FR) petition filed claiming that the government’s recent decision to reduce the interest rates paid when investing the funds of the EPF in treasury bills and bonds is a violation of fundamental rights.

The relevant order was issued by a three-judge bench of the Supreme Court comprising Justices Vijith Malalgoda, Gamini Amarasekera and Janak de Silva.

The petition in question was filed by financial analyst and EPF member, Chathuranga Abeysinghe, claiming that the decision to reduce the interest rates paid when investing the funds of the EPF in treasury bills and bonds to 9% is a violation of fundamental rights of those who are members of the EPF.

Accordingly, the Secretary of the Ministry of Finance, the Monetary Board of the Central Bank of Sri Lanka (CBSL) and its members, the CBSL Governor and the Attorney General have been named as respondents.

On 07 August, the Cabinet of Ministers approved a proposal to amend the Employees’ Provident Fund (EPF) Act to maintain a minimum of 9% annual interest rate within the next four years.

The resolution was submitted by President Ranil Wickremesinghe, in his capacity as the Minister of Finance, Economic Stabilization and National Policies, to take all required measures to amend the EPF Act No. 15 of 1958, ordering that the minimum annual interest rate on the contribution within the next four years, from 2023 -2026, should at least be 9%.