Oct 31, Colombo: Sri Lanka Supreme Court has today postponed the fundamental rights petition filed against the investment of Employees' Provident Fund (EPF) monies in the stock market. The court postponed the hearing till December 3rd.
The petition was filed by 11 trade unions alleging that the EPF monies had been invested in loss making companies resulting in massive losses to the Fund, which is a private sector retirement scheme.
The trade unions have stated that the custodian of the EPF, the Central Bank had invested the Fund's monies in violation of the regulations that govern the Fund and its monies.
EPF monies have been invested in stocks in an arbitrary manner resulting in the Fund incurring a Rs. 4 billion loss, the unions say. The Fund has invested Rs. 7.2 billion in the Colombo stock market.
the Employees' Provident Fund Department of the Central Bank says only around 6 percent of the fund is invested in stock market and the investments in the stock market are made with a long term focus to generate profit and enhance the Fund's capital base over the longer term.
The 11 trade unions through the petition have sought a court direction to restrict the investment of EPF monies only in blue chip companies.