Issuing a statement to clear the confusion made by misleading statements from opposition politicians, the CBSL said that according to the EPF Act, the Monetary Board of the Central Bank of Sri Lanka is responsible for managing the Fund as its custodian.
The Commissioner of Labour is responsible for the general administration of the Fund.
The Monetary Board may invest the moneys of the Fund in securities that the Board considers fit and may sell such securities, the CBSL said.
"Accordingly, the EPF clearly has the authority to make investments in the share market, including the banking and financial sectors," CBSL clarified.
The Banking and Finance sector is the largest sector in the Sri Lankan equity market with over 20 percent of the total market capitalization and the EPF has invested one percent of its total portfolio in the sector.
The EPF has also invested in other sectors including construction and engineering, manufacturing, hotel and travel, telecommunication, and diversified holdings in the Colombo Stock Exchange, and in other instruments such as debentures, mortgage backed securities and selected private equities, the CBSL said adding that over 95 percent of the portfolio is however, in government paper.
The Monetary Board assures the public that the EPF would discharge its investment responsibilities and duties in accordance with the stipulated rules and regulations in a professional and fair manner, providing a positive real rate of return to all its members while safeguarding the wealth of the EPF, the CBSL said.
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