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Sri Lanka's state sector retirement funds to invest more in share market
Mon, Mar 22, 2010, 12:01 pm SL Time, ColomboPage News Desk, Sri Lanka.
Mar 22, Colombo: Sri Lanka's Central Bank Governor Ajith Nivard Cabraal has said that the country's state sector retirement fund plans to make more investments in the share market and less in the traditional Treasury Bills and bonds.
"We are not interested in taking management control. What we are interested is in good management, good returns, and good capital gains," Cabraal has reportedly said.
According to the Governor retirement funds like the Employees Provident Fund (EPF) and the Employees Trust Fund (ETF) as well as the Sri Lanka Insurance Corporation (SLIC) plan more aggressive equity investment in privately run firms without participating in their management.
Although the EPF and ETF have huge funds at their disposal, only a small part of their funds have been invested in stocks, as they are restricted by law in investing in stocks, since they are seen as more risky than government bonds.
"With prospects for investment in Treasury instruments (bills and bonds) falling in the next two or three years, that's going to change," Cabraal has been quoted in the media as saying.
Last week the EPF bought a 10 percent stake of Lighthouse Hotel.