Twin probes on Sri Lanka EPF scam

ECONOMYNEXT – Sri Lanka’s central bank and law enforcement authorities are probing the Employees’ Provident Fund, a retirement fund of private sector workers which is managed by state workers.

Sri Lanka’s President Maithripala Sirisena is also appointing a commission to go into the bondscam.

Concerns have been raised that long dated bonds bought at rigged auction at high yields (low prices) through so-called ‘bondscams’ were later dumped on the EPF at low yields (high prices) during the past two years, giving massive profits to at least one primary dealer.

The Central Bank’s governing Monetary Board said it was conducting its own investigation into deals made in the EPF.

"The law enforcement authorities have also been requested to carry out an external independent investigation into the issuance of Government securities in 2015 and 2016 and related matters, as it involves examining internal operations carried out by the staff of the Central Bank," the statement said.

The central bank said it was taking action to fix the management of the EPF.

"With regard to the operations of the EPF, the Monetary Board, during the past six months, has taken several measures to strengthen the decision making process with respect to investments," the statement said.

"These serve to safeguard the interests of the members of the EPF." (Colombo/Jan23/2017)






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