Former Governor Central Bank of Sri Lanka Nivard Cabral at the center of many controversial transactions from Greek Bonds to Stocks using EPF money is now saying release of 20% of the EPF balances (amounting to around Rs.500 billion) from the fund of about Rs.2,500 billion to the Members themselves. God bless Sri Lanka if this is done. Sri Lanka will be the only country who ask the workers to spend their hard earned money to bail out business and the government. When it is the government who should be doing it.
While this crisis is an Act of God, benefits that will accrue to the EPF Members must continue to accrue into the future given that we have the oldest population and the highest life expectancy in South Asia. The financial system and the Sri Lankan economy at the present time should not be bailed using workers money, if such a suggestion is implemented it would be disastrous for the workers and will set a very bad precedent a top economist told LNW.
The Sri Lankan economy is facing the biggest crisis ever after the Epidemic of the 1950s . Our biggest foreign exchange earner Middle East Workers remittances is now drying up . The Sri Lankan Rupee will face the highest ever average depreciation in 2020. Foreign reserves will be under a huge strain. Poverty will increase. Borrowings will increase, financial institution will be under huge stress. In this background releasing 500 Billion sounds far fetched, reckless and ridiculous an economist told LNW.
Sri Lankan economy in the aftermath of Covid-19, will never be the same again. An ex SLFP MP told LNW that Mr Cabral is a big liability to Prime Minister Mahinda Rajapakse after the forensic report and the government. Fortunately, we Have Dr PB Jayasundara a genuine economist unlike Cabral, he is in charge of the economy. Dr PB Jayasundara should ask Cabral to stay away without making statements. Dinesh Gunwardna Labour Minister has also been critical of Cabral’s Idea. He has knocked it down fully the MP told LNW. An Opposition MP told LNW that Unions will never tolerate the violation of an age old practice. That has stood the test of time. Moreover Cabral has a history of playing with the EPF money, like his own with his family and friends. So he is not best man to make the suggestion.