Central Bank Governor Dr. Nandalal Weerasinghe recently stated in the Committee on Public Finance that the membership interest of the Employees’ Provident Fund can be given as 9 percent for a period of four years.
The Committee on Public Finance was held at the Parliament Complex under the Chairmanship, MP Dr. Harsha De Silva. Officials of the Central Bank explained that the 30% increase in tax as prescribed by the Inland Revenue (Amendment) Bill applies only to bond portfolio interest income.
They also pointed out that in the event that pension funds in domestic debt restructuring (DDO), this will be reduced to 14 percent. The Committee was of the view that an inflation adjusted interest rate should be considered to ensure a positive return to the members of the Employees’ Provident Fund.