Sri Lanka has relaxed restrictions placed on Private Pension, Provident, Gratuity, Trust and Savings Funds, in making investments in the local capital market.
Accordingly, the above said funds can now invest not more that 20% of the moneys of the fund, in listed debentures or other stocks.
They will also have to invest 40% of their moneys by way of deposits in the Bank of Ceylon, People’s Bank, National Savings Bank or in investments in government securities.
Any balance should be invested by way of deposits in other commercial Banks.
Securities and Exchange Commission said, the latest relaxations has been brought in with the aim of developing the Sri Lankan capital market through widening the domestic investor base and enhancing the returns of the contributing members of these funds, which by nature have a long- term investment horizon.