Court of Appeal Rules in Favour of Central Bank, Sets Aside Order of the RTI Commission on EPF Transactions

The Court of Appeal has ruled in favour of the Central Bank of Sri Lanka, setting aside a decision of the Right to Information (RTI) Commission that had directed the disclosure of detailed transaction level information relating to the Employees’ Provident Fund (EPF).

The case arose from an RTI request submitted by Verité Research (Pvt) Ltd seeking information on EPF investments, including detailed information of government securities transactions such as purchase dates, yields, prices, and counterparties. While the Central Bank released certain general information, it refused to disclose transaction level information, on the basis that such information is commercially sensitive and falls within the statutory exemptions provided under Section 5(1) of the Right to Information Act No. 12 of 2016 (RTI Act).

The Court of Appeal overruled the decision of the RTI Commission, holding that the requested information falls within the exemption under Section 5(1)(d) of the RTI Act, which protects commercially confidential information where disclosure would harm a third party.

The Court observed that releasing EPF transaction details could expose the Fund’s investment strategies, enabling market participants to anticipate and outmaneuver its bids in government securities auctions. The Court noted that this would place the EPF at a competitive disadvantage and potentially reduce returns, ultimately affecting millions of contributors to the Fund. Emphasising the Central Bank’s fiduciary duty to safeguard EPF assets, the Court held that disclosure of such sensitive financial information would undermine the Fund’s position in the market. It further noted that transparency in EPF operations is already ensured through statutory mechanisms, including annual reporting, audits by the Auditor General, and parliamentary oversight.

On the question of public interest, the Court concluded that the respondent had failed to demonstrate that the benefits of disclosure would outweigh the potential harm to the EPF and its members.

Accordingly, the Court held that the RTI Commission had exceeded its powers by ordering disclosure in circumstances where a valid statutory exemption applied. Accordingly, the Commission’s order dated 27th November 2018 was set aside, and the appeal was allowed.

The judgment affirms that while the RTI Act promotes transparency, commercially sensitive financial information held by public authorities may be lawfully withheld where disclosure would harm competitive interests and no overriding public interest is established.

Source: Adaderana