ECONOMYNEXT – Sri Lanka’s Employees’ Provident Fund (EPF) has exited its investment in unlisted Canwill Holdings Private Limited, absorbing its 5 billion rupee capital back into the fund after transferring its stake to the government as part of a restructuring plan, central bank officials said.
The unlisted investment no longer appears in the retirement fund’s investment documents after the transaction was finalized by the end of last year, allowing the EPF to redeploy the capital into other income-generating assets.
The EPF, managed by the Central Bank of Sri Lanka, had not earned returns on its investment in Canwill Holdings, leading to the restructuring decision.
Concerns have been raised that the EPF’s yield is too low and keeping it under central bank management is a conflict of interest as the agency also is charged with selling government debt and that it is a ‘captive fund’.
An official from the Central Bank’s EPF department explained that the fund entered an agreement during the government-led restructuring process to hand over its rights in Canwill Holdings.
“In the restructuring process undertaken by the government, based on the principle that the rights we held in Canwill Holdings would be transferred to the government, then restructured, and if any additional amount was received after selling it, it would be returned to us,” an official from the Central Bank’s Employees’ Provident Fund department said.
Under the agreement, while the 5 billion rupees principal was recovered and reallocated, the EPF retains a claim to any future profits if the asset is sold by the government.
“Because our investment there was 5 billion. We took that 5 billion into the EPF and gave our share to the government. Therefore, it is no longer in our portfolio now,” the official said. “So, we subsequently utilized those funds for other investments and are currently receiving a return from them.”
Addressing changes in annual valuations of unlisted equity holdings, Central Bank Governor Nandalal Weerasinghe noted that unlisted assets undergo year-to-year adjustments to reflect realistic financial values under standard accounting practices.
“In that very shareholding, when doing a mark-to-market valuation, accordingly, a market valuation must be done from year to year in accordance with IFRS (International Financial Reporting Standards). It changes based on that. So, over time, as its market valuation changes—similar to economic fluctuations—that valuation decreases,” Weerasinghe said.
The EPF is the country’s largest state-managed pension fund, holding private sector worker savings managed under the purview of the Central Bank. (Colombo/Jul23/2026)