Domestic debt write-off – CB report reveals hidden danger to EPF
The government and the authorities have tried to cover up the dangerous situation facing the Employees’ Provident Fund (EPF) especially in the process of cutting domestic debt on the orders of the International Monetary Fund (IMF), but it has failed.
Plans are currently being prepared to cut off the large amount of debt that the government has taken from the banking system and the Employees’ Provident Fund in Sri Lanka using names such as “Local Debt Consolidation Process”.
The ministers and some officials of the government are spreading the word that this will not affect the pension funds in the banking system of this country.
But in the annual report issued by the Central Bank in relation to the year 2022, an early warning has been given about the risk to the Employee Provident Fund. It has been stated very clearly that, “During the possible domestic debt optimization process, the Employee Provident Fund may have to face some risk by having to depend more on government securities.”
It is further stated that “Due to the adverse economic and financial conditions, the investment decision making process of the fund was challenging during the year.”
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