Sri Lanka Employees Provident Fund managers face disciplinary action

ECONOMYNEXT – Sri Lanka’s central bank said officials in charge of Employees’ Provident Fund, a forced saving scheme of private sector workers will face disciplinary action.

Some managers of the EPF had been alleged to have bought bonds from primary dealers at higher prices after avoiding bidding at bond auctions.

"The Monetary Board had a discussion on the Report on the Examination of the Employees’ Provident Fund Transactions in Government Securities with a view to decide the suitable course of action to be followed in respect of the findings," the Central Bank said in a statement.

"The Monetary Board decided to commence disciplinary proceedings in terms of the internal procedures of the Central Bank of Sri Lanka against any officials of the Bank where there is evidence of wrongdoing."

Sri Lanka’s central bank ran into a controversy under then Governor Ajuna Mahendran after a firm connected to his son-in-law was alleged to be using insider information and benefiting from rigged auctions.

He has denied the charges.

The bought at low prices (high interest rates) where later alleged to have been dumped on the EPF, which is also managed by the Central Bank at higher prices (lower interest) on the provident fund. (Colombo/Mar28/2017)

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