ECONOMYNEXT – Net inflows into Sri Lanka’s main state-run pension fund are falling while outflows are rising, Harsha De Silva, economist and Deputy Minister of Foreign Affairs has warned.
It was important to assess the true state of the Employees’ Provident Fund, he told the National Pensioners Day Symposium organised by the Department of Pensions.
“You need to go beyond what we been told over the years and see the reality of the EPF. As long as contributions keep outpacing withdrawals, the system is solvent,” he said.
“But the recent trend is alarming – in 2013 inflows were 80 billion rupees while outflows were 50 billion rupees, with net inflow 30 billion rupees.
“In 2014 inflows were 90 billion rupees while outflows went up to 65 billion rupees with net inflows down at 25 billion rupees,” De Silva said.
“If this trend continues net inflows will turn negative and the fund will have to liquidate holdings to meet the ouflow.” (Colombo/October 08 2015)