Sri Lanka’s largest superannuation fund, the Employees’ Provident Fund (EPF), which is under the purview of the Central Bank, posted a significant loss of approximately Rs.39.08 billion, as at end of first-quarter 2020, Central Bank data showed.
Up to now, the EPF has invested Rs.84.05 billion in 83 listed equities. As at end of first-quarter 2020, its market value has reduced to Rs.44.97 billion. Accordingly, the EPF has lost a staggering Rs.39.08 billion by investing in the stock market.
The Employees’ Provident Fund has just made a new investment in Teejay Lanka PLC, in the first quarter of 2020. As at end-December 2019, EPF has invested in 384,849 shares of Teejay Lanka PLC and this has increased to 6,979,333 shares as at 31 March 2020.
As per the Employees’ Provident Fund Act. No. 15 of 1958, the Monetary Board of the Central Bank of Sri Lanka is entrusted with the custodianship of the Fund while the Commissioner of Labour is entrusted with the general administration of the Fund.
The total value of the Fund has been increased by Rs.251.1 billion to Rs.2, 540.4 billion at end-2019 from Rs. 2,289.4 billion recorded by end-2018 recording an 11% growth.
(LIN)