Wednesday, February 21, 2024
HomeNewsEPF depositors 9% interest unaffected amidst domestic debt restructuring

EPF depositors 9% interest unaffected amidst domestic debt restructuring

During a meeting with heads of media institutions Central Bank CBSL Governor Dr. Nandalal Weerasinghe assures that the 09% interest paid on EPF deposits will not be affected due to the Domestic Debt Restructuring DDR process.

CBSL Governor Dr. Nandalal Weerasinghe further says that Banks are excluded from Domestic Debt Restructuring Process as they already pay an effective tax rate of 50%.

Addressing a media briefing at the Presidential Media Centre, Central Bank Governor Dr. Nandalal Weerasinghe said the banking system would not be burdened any further as it already contributes to the Treasury & economy through taxes of over 50%. He assured that the 57 million depositors would be protected.

The CB Governor, responding to a question posed by a journalist said Friday (30) was declared a bank holiday to prevent any speculation, until parliament approval for domestic debt restructuring is obtained.

Under the Domestic Debt Restructuring Process, Treasury Bonds will re-issue with a new interest rate of 12.4% up until 2024, 7.5% up until 2026 and 5% until maturity. Treasury Bonds held by funds including EPF/ETF will be re-issued.

CB Governor said it was vital to protect the banking sector as a collapse of the country’s banking sector would have catastrophic consequences.

President Ranil Wickremesinghe earlier said that restructuring of domestic debt will not affect the member balance of any superannuation funds, including the EPF, ETF & the rate of return of superannuation funds that have been paid in the past.

Recently President stated that the restructuring of domestic debt will not pose any threat to the stability of the country’s banking system, whether it be public or private banks. He specifically mentioned that the deposits of more than 50 million bank depositors will remain unaffected, and there will be no changes to the current interest rates paid on bank deposits.

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