Mar 12, 2011 (LBO) – A pension fund of private Sri Lankan citizens managed by the state has made large capital gains by investing in stocks with the share of equity in the 900 billion rupees fund rising to 5.0 percent from 1.3 percent, its managers said. Sri Lanka’s Employees Provident Fund, which is made up forced savings of private citizens managed by the state, had invested 32 billion rupees in stocks, its managers, the Central Bank said.
The fund had made 1.5 billion rupees in realized gains and is sitting on a further 16.2 billion rupees in unrealized gains, the Central Bank which manages the fund said.
EPF had invested in banking, finance, insurance, hotel and travel and diversified sectors, a Central Bank said.
“Since a major portion of the EPF’s equity investments are held in the long term portfolio, further substantial gains are also expected to be realized in the future,” the Central Bank said.
Unlike in countries like Singapore where the central provident fund covers state and non state workers, in Sri Lanka the EPF is made up deductions from the salaries of private citizens only. State workers get lifetime pensions from taxes paid by all citizens with no contributions. The government is shortly to pass laws to deduct mor