EPF said it has invested about 92 percent of its funds in government securities, 6 percent in stocks and 2 percent in corporate debt and short term government securities.
Sri Lanka's Central Bank, which manages the EPF said it had made profits of 101.7 billion rupees in 2009, 111.5 billion rupees in 2010, 107.5 billion rupees in 2011, 111.8 billion rupees in 2012 and 125.6 billion rupees in 2013.
It had declared "impressive rates of return of 13.75 per cent in 2009, 12.5 per cent in 2010, 11.5 per cent in 2011, 11.5 percent in 2012 and 11 percent in 2013 to its members," the EPF department of the Central Bank said in a statement.
"The Employees’ Provident Fund (EPF) wishes to state that some media reports which highlight that the EPF has made billions of losses in investing in the stock market is misleading and erroneous," the statement said.
"Such losses reported by some media and politicians are not realized losses, but are marked-to-market unrealized losses, arising from variations in marker prices of stocks.
"Therefore these unrealized losses/gains do not increase or decrease the benefits distributed to the members."
The EPF said unrealized losses "fluctuated widely" from time to time. In February 2011 when Sri Lanka's stock market peaked unrealized profits on its stock portfolio was 20.7 billion rupees.