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Thursday, February 29, 2024

IMF led DDR in Sri Lanka: 77% Sri Lankans oppose reducing returns on EPF

Colombo Dec.5 (Daily Mirror) – According to the Syndicated Surveys poll, Verité Research found that 77% of Sri Lankan adults claimed that the government’s decision to reduce returns on retirement savings in the Employees’ Provident Fund (EPF) is not necessary and not done in a fair manner.

The respondents were given this information: “To help recover from the debt crisis, the government reduced the returns on retirement savings in the EPF.” They were then read out two statements, and for each, they were asked if they agreed or not.

The survey was done in a fair manner. Only 10% agreed with both statements and said that it was necessary and done in a fair manner, while 13% of the adults had no opinion or didn’t know about this issue.

Meanwhile, 44% of the respondents disagreed with both statements, and 33% disagreed with either of the statements they read.

Sri Lanka completed a unique domestic debt restructuring (DDR) in September 2023, in which local currency debt restructuring exclusively targeted the retirement provident funds of formal sector workers. The banking and financial sectors, as well as private creditors and most public sector workers were excluded.

This might have set a new global precedent in DDR for adverse rather than preferential treatment of retirement funds.

The survey was based on an island-wide, nationally representative sample of responses from 1,029 Sri Lankan adults.

Original heading: Reduce returns on EPF: 77% adults say it is not necessary



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