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Last Updated : 2024-04-26 16:45:00
The MP in his statement makes two claims: (1) the majority of domestic bonds is in treasury bonds, which amounts to approximately LKR 9 trillion and (2) of the total treasury bonds, 45% is in banks and 43% was borrowed from the EPF and ETF. To evaluate these claims, FactCheck.lk consulted the Central Bank (CBSL) Annual Report 2022 for data on domestic debt as of 31 December 2022.
CBSL data indicates that Sri Lanka’s total domestic debt is LKR 15.03 trillion, equivalent to 62.27% of GDP in 2022. Of this total debt, LKR 8.71 trillion is in treasury bonds, representing 57.93% of total domestic debt. These figures align with the MP’s first claim that the majority of domestic debt is in treasury bonds.
CBSL data also indicates that LKR 3.12 trillion in treasury bonds is owned by licensed commercial banks, and LKR 0.75 trillion is owned by licensed specialised banks. Together, these institutions own 44.43% of total treasury bonds. Retirement (superannuation) funds, including EPF and ETF, own LKR 3.72 trillion in treasury bonds. This figure constitutes 42.72% of the total treasury bonds. These figures align with the MP’s second claim. It means that the retirement funds (mostly EPF and ETF), hold as many government bonds as the entirety of the commercial and specialised banks in Sri Lanka.
Therefore, we classify his statement as TRUE.
FactCheck is a platform run by Verité Research.
For comments, suggestions and feedback, please visit www.factcheck.lk.
EPF and ETF continued buying government bonds is foul mess Tuesday, 27 June 2023 01:11 AM
The EPF and ETF were made to buy bonds by the Central Bank it's controller. Even when aware how bad the government credit situation was, the EPF and ETF were forced to buy more government bonds. Central Bank is unsuitable custodian of EPF and ETF since the Bond Scam. The EPF and ETF needs to be run by a panel that is independent panel who have to constantly checked for double dealing. Current CB Governor seems on the path to do massive mayhem to local government debt holder.
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