Mon, 27 Mar 2023 Today's Paper

CB to revise EPF’s investment guidelines


4 January 2021 07:38 pm - 0     - {{hitsCtrl.values.hits}}


The Central Bank today announced plans to revise the investment guidelines related to the Employees’ Provident Fund (EPF) to diversify the investment portfolio of Sri Lanka’s largest superannuation fund under the current low interest rate environment.

“The intention is to facilitate a more prudent investment decision making process, while strengthening the existing internal control environment. We expect to rebalance the investment portfolio to generate a high risk adjusted rate of return compared to market rates, while seeking alternative investment avenues to diversify the investment portfolio given the current low interest rate environment,” the Central Bank Governor Prof. W.D. Lakshman said.

As per the current investment policy, the EPF Department of the Central Bank is authorized to invest in Treasury bill and bonds issued by the government, corporate debentures and trust certificates, equities, fixed deposits, commercial papers, reverse repurchase agreements, Standing Deposit Facility (SDF) and cash, subject to certain restrictions.

The investment portfolio of the Rs.2.54 trillion fund consisted of 93.8 percent in government securities and 3 percent in equity,

At the end of 2019, the investment portfolio of the Rs.2.5 trillion fund consisted of 93.8 percent in government securities and 3 percent in equity.

The yields on government securities came down to historical low levels during the 2020.

The fund’s declared interest rate on member balance fell to 9.25 percent in 2019 compared to 9.5 percent in 2018.










  Comments - 0

Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment

Import of South Indian eggs: Sri Lanka walks on Indian eggshells

With the increase in egg prices the government decided to import eggs to regu

Wokeism: Is it destructive, or are you afraid of change? A response

In order to critically discuss a movement, we must first understand its etymo

Defeat in Ananthapuram Battle denoted the LTTE’s end

Many battles were fought during the long war between the Sri Lankan armed for

Wokeism: A Weapon of Mass Destruction?

When can one say they’ve had enough of being in a state of ‘wokeness’ a