FR petition filed against domestic debt restructuring program

A fundamental rights (FR) petition has been filed before the Supreme Court, challenging the government’s Domestic Debt Optimization (DDO) program.

The petition was put forward by MP Prof. G.L. Peiris and Samagi Jana Balawegaya’s general secretary MP Ranjith Madduma Bandara today.

The Central Bank of Sri Lanka (CBSL), its governor Dr. Nandalal Weerasinghe and its Monetary Board, as well as the Finance Ministry’s Secretary, the Attorney General and several others have been named as the respondents of this petition.

The petitioners have taken issue with the decision to reduce the interest rates paid when investing the funds of the Employees’ Provident Fund (EPF) in government securities, under the DDO program.

The EPF has active accounts of at least 2.5 million working people and their funds are largely invested in treasury bills and bonds, the petitioners added, noting that reducing the interest rate to 9% has violated the people’s fundamental rights.

In addition, the CBSL’s Monetary Board has not sought the views of the members of the EPF before allowing the Fund to participate in the DDO program.