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Govt. planning to handover EPF-ETF to private agency: Bandula

16 Nov 2015 - {{hitsCtrl.values.hits}}

The real intention in setting up a private sector pension scheme by merging the EPF and the ETF is to invest these funds in the Colombo Stock Exchange (CSE) by handing over their administration to a private fund managing agency, UPFA MP Bandula Gunawardane said today.

He said it was unwise to invest the EPF-ETF funds amounting to Rs.1.7 trillion, the largest fund in South Asia, in the stock exchange because it would put the future of private sector employees at risk.

“Investing in the SE is similar to gambling. You never know what will be the outcome. Sometimes you may receive benefits and sometimes you will lose everything. Therefore, it is not acceptable to risk the EPF-ETF fund,” Mr. Gunawardane said.

He said the then Finance Minister T.B. Illangaratne who created the EPF appointed the Central Bank as its caretaker. He said the fund which had a balance of Rs.405 billion when the government of former President Mahinda Rajapaksa took over had grown up to Rs.1,442 billion by the time his government took office.

“Because of wise investment of the fund, it had increased by 25 per cent annually. Though the government could invest up to 10 per cent in the SE, the previous government had only invested about six per cent. The profits earned last year was Rs.152 billion. And the rest was invested in Treasury Bonds and Bills,” Mr. Gunawardene said.

He said if the administration of the fund was handed over to a fund managing agency, it would take the final decision on releasing the funds inclusive of how much the government could use for Treasury Bills.

He said the SLFP should not agree to this move because it was one of SLFP Ministers who created the fund. “We request President Maithripala Sirisena, the SLFP Chairman, not to allow this to happen,” Mr. Gunawaradne said. (Lahiru Pothmulla)

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Govt. planning to handover EPF-ETF to private agency: Bandula

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