Written by Staff Writer
19 May, 2019 | 9:41 pm
COLOMBO (News 1st) – Speaking to News 1st, Senior Banker Rusiripala Tennakoon says the returning of Sri Lanka’s Rs. 2.3 trillion state-managed Employees’ Provident Fund to the Colombo Stock Exchange, is an unwise move. However quoting stock market analysts, the Island newspaper reported that the decision was taken as the IMF’s optimism on the country’s economic growth potential for 2019 gave out some positive signals for the market. One of the main reasons showed by the analysts for the EPF entering the secondary stock market was due to the market currently being at a seven-year low following a market crash after the 04/21 attacks.
The Employees Provident Fund manages funds contributed by employees of both the private and the public sector of the country. As of December 31st 2017, the number of active members in the EPF stood at 2.63 million with a net worth of Rs. 2,066.299 billion.
It is common knowledge that the EPF funds do not belong to the government, but TO the PEOPLE, to fund their retirement after years of hard and dedicated work. However, instances, where the fund was directly or indirectly UNDULY influenced, were brought to the limelight during the past decade.
According to the Presidential Commission of Inquiry, the EPF is estimated to have lost in excess of Rs. 8500 million due to the Central Bank bond scam. Despite those responsible for the scam being revealed by the commission, zero action has been taken in this regard and the perpetrators have not been brought before the law. The hard earned money of the general public was also defrauded through the pumping and dumping scandal in the stock exchange, during the tenure of the present government as well as the Rajapakse regime.
Against such a backdrop, is it appropriate to invest the funds of the EPF in the Colombo Stock Market once again?
Can this decision be supported and approved?
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