Auditor General H.A.S. Smaraweera in his review of the 2011 annual report of the Employees Provident Fund (EPF) said Sri Lanka’s main social security fund had lost nearly Rs.11.7 billion through investments in 58 private institutions.
He said these losses had resulted in a 1 % decrease on benefits payable to 2.5 million EPF members in 2011.
“There has been a 1% decrease on the benefits payable to the members in 2011 as compared with 2010. This is a decrease on investment income of Rs.5,049.303,683 in 2011,” Mr. Samaraweera stated in his audit review of October 10, 2013.
Out of the long term and short term investments amounting to Rs.63,169,398,923 made by the EPF in 76 companies in the share market by January 15, 2013, the value of investments made in 58 companies amounting to Rs.54,006,955,606 had diminished by Rs.ll,737,841,979.
“Some 500 million rupees invested in 1,863,676 units of an airline company in 2010 had not yielded any income to the fund since the date of investment. In its response, the Central Bank said it was confident of future profits from the companies with the losses decreasing gradually,” the Auditor General’s report noted..........................................................