Sep 13, 2014 (LBO) - Sri Lanka's Employee's Provident Fund’s unrealized profits of the share portfolio passed 10 billion rupees on September this year, Central Bank said in a media release.
Realized capital gains and dividends have amounted to 3.4 billion rupees to data this year.
During the first half of 2014, there were allegations levelled at the Employee Provident Fund or EPF that its share portfolio had suffered large unrealized losses during the period spanning early 2012 to early 2014 the bank said.
The EPF has long been used resource to finance a state budget deficit and is generally known as a 'captive source'. It is managed by the state.
Under the EPF law, when a contributor reaches 55 years (50 for females or when they get married) a lump sum withdrawal can be made.
“However, as always maintained by the EPF, such claims have now been proved baseless, with the unrealized losses turning into substantial unrealized gains in the second half of this year.” Central Bank was quoted in the media release.
The bank says the EPF has earned profits from its investments in Treasury Bills and Treasury Bonds over the years, with the EPF earnings of 112.3 billion rupees in 2011, 117.4 billion rupees in 2012 and 131.4 billion rupees in 2013.
The EPF’s Financial Statements for 2013 which were published in the national newspapers on 8th May 2014, are currently being audited by the Auditor General, and after finalization of the audit, the Annual Report for 2013 is due to be tabled in Parliament by October 2014.
Realized capital gains and dividends have amounted to 3.4 billion rupees to data this year.
During the first half of 2014, there were allegations levelled at the Employee Provident Fund or EPF that its share portfolio had suffered large unrealized losses during the period spanning early 2012 to early 2014 the bank said.
The EPF has long been used resource to finance a state budget deficit and is generally known as a 'captive source'. It is managed by the state.
Under the EPF law, when a contributor reaches 55 years (50 for females or when they get married) a lump sum withdrawal can be made.
“However, as always maintained by the EPF, such claims have now been proved baseless, with the unrealized losses turning into substantial unrealized gains in the second half of this year.” Central Bank was quoted in the media release.
The bank says the EPF has earned profits from its investments in Treasury Bills and Treasury Bonds over the years, with the EPF earnings of 112.3 billion rupees in 2011, 117.4 billion rupees in 2012 and 131.4 billion rupees in 2013.
The EPF’s Financial Statements for 2013 which were published in the national newspapers on 8th May 2014, are currently being audited by the Auditor General, and after finalization of the audit, the Annual Report for 2013 is due to be tabled in Parliament by October 2014.
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