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Economy

EPF begins buying stocks to bolster sagging economy

Central Bank of Sri Lanka/CBSL

The Employees’ Provident Fund (EPF) has started buying shares in companies again after a long layoff as the Colombo Stock Market hit a seven-year low.

Economynext quoted Central Bank Governor Indrajit Coomaraswamy as saying that the EPF “has bought shares in one company last week.”

He added that the rules forbid him from disclosing which company the EPF invested in.

Coomaraswamy added that one of the main reasons for the EPF to enter the stock market was because of the crash that took place after the Easter Sunday bombings.

The EPF stopped buying shares in companies after there were allegations of corruption and other issues in 2011.

Share prices have been hit by political unrest, liquidity shortages and a slowing economy.

The CBSL Governor said the EPF will invest in a small list of companies for now.

The EPF has around Rs. 2.3 trillion in its kitty which keeps on increasing by around Rs.300 billion every year.