6 % of EPF funds in stock market
View(s):The Central Bank (CB) confirmed this week that 6 per cent of EPF funds would be invested in the Colombo stock market.
This information was conveyed by CB Governor Indrajit Coomaraswamy and his senior officials to a group of trade union leaders during a mid-week meeting at the CB headquarters in Colombo. This was a continuation of several meetings trade unions have had with the CB over the EPF issue.
“Unions wanted it recorded that they were opposed to the EPF investing in the stock market. Though they had faith in the Governor, they had no faith in the political leadership,” said trade union leader Palitha Athukorala, who was present at the discussion. The EPF investment in the market will increase from a current 4 per cent of its portfolio.
According to the CB’s 2018 annual report, total investment income of the Fund amounted to Rs. 222.4 billion, down by 0.1 per cent over the previous year.
Mr. Athukorala quoted the Governor as saying that he would not bow to political pressure in the use of EPF funds and also that this is the time to buy since blue chip companies were at rock bottom prices.