Supreme Court sismisses FR petition Against Domestic Debt Restructuring

In a recent development, the Supreme Court has dismissed yet another Fundamental Rights petition that challenged the inclusion of the Employees' Provident Fund (EPF) and Employees' Trust Fund (ETF) in the scope of domestic debt restructuring. 

The three-judge bench, consisting of Justices Vijith Malalgoda, Janak de Silva, and Gamini Amarasekara, rejected the petition after hearing arguments from all parties involved over a span of two days.

The petitioner, represented by M.A. Sumanthiran PC, argued that extending the time period for the repayment of bonds acquired by the state from superannuation funds like the EPF and ETF violates the fundamental rights of the fund members. They claimed that such a move is unequal, unreasonable, arbitrary, and goes against the constitution.

The EPF, ETF, Monetary Board, and Public Debt Department of the Central Bank of Sri Lanka were named as respondents in this application.

The respondents' counsel argued before the court that the matter falls outside the court's jurisdiction as per the constitution.

Senior Counsel Eraj de Silva, representing the ETF, emphasized that according to Articles 4 and 148 of the Constitution, the parliament has complete control over the nation's public finances. Therefore, the judiciary should not interfere in decisions approved by the parliament.

De Silva further highlighted that the domestic debt restructuring concerning the EPF and ETF aims to protect the funds of the people. Defaulting on the repayment of bonds would result in chaos and leave nothing for the fund members. He stressed that the evaluation should not only consider the current circumstances but also the potential outcomes in the event of default or increased money printing leading to inflation.

Furthermore, De Silva pointed out that the petitioner failed to disclose his affiliation with the NPP (National People's Power) and his previous candidacy in an election on behalf of the NPP. He argued that this information was relevant as the NPP opposes the domestic debt restructuring process.

"It is clear that the petitioner's affiliated party aims to obstruct the debt restructuring process without offering a viable alternative," De Silva stated.