Court Relief

Oct 06, 2012 (LBO) – Key trade unions in Sri Lanka have gone to court over controversial share investments made in second tier firms and banks by state managers of a retirement fund of private sector workers. Eleven trade unions that sought relief from Sri Lanka’s Supreme Court alleged that stocks have been bought in companies in an alleged violation of a publicly declared investments policy of Sri Lanka’s Employees Provident Fund in documents filed in court Thursday.

The EPF, which is a forced saving scheme, is managed by Sri Lanka’s Central Bank.

The unions alleged that stocks – including those in Colombo Stock Exchange’s second tier board- have been bought at inflated prices in violation of a publicly disclosed investment policy.

In addition, stocks have been bought in banks leading to a situation of insider dealing as the Central Bank being the regulator of the banks was privy to non-public information, the unions have alleged.

The plaint said ministers of the ruling administration has said in parliament that the investment policy has been changed, though unions or beneficiaries had not been consulted on the move.

The trade unions asked for a criminal investigation into the stock