Has EPF portfolio now recorded an unrealised gain of Rs. 2.5 b?

Friday, 11 July 2014 01:21 -     - {{hitsCtrl.values.hits}}

During the past year or so, there were many allegations by a certain politicians and others that the EPF has suffered losses in billions of rupees from their investments in the stock market. Those critics also demanded and that the EPF must be investigated and the officers responsible for such losses be punished. The EPF, in response on several instances, clarified that the losses as alleged were not actual losses but unrealised losses arising from the fluctuations in the stock market prices. They also stated that the benefits paid to EPF members were not affected by such unrealised losses. The EPF further stated that it had earned billions of rupees in profits for its members each year, and that they had been paying its members an interest rate which is relatively higher than the average bank deposit rate. They also confidently predicted that the alleged losses would convert to gains in the future when the stock market turns around. However, the critics, undeterred by such clarifications, persisted in heaping blame on the EPF, at every turn. The CSE stockbrokers now say that, with the upturn in the stock market in recent times, the EPF’s unrealised losses have now been converted into substantial unrealised gains of over Rs. 2.5 billion! Will that mean that those vociferous critics will now rush to commend the EPF staff who were responsible for these growing profits, and perhaps even suggest that the gains be distributed among the Central Bank staff? Patricia de Silva