The Investor Sentiment - Equity and investments forum for Sri Lankans

Join the forum, it's quick and easy

The Investor Sentiment - Equity and investments forum for Sri Lankans
The Investor Sentiment - Equity and investments forum for Sri Lankans
Would you like to react to this message? Create an account in a few clicks or log in to continue.
Please send an email to if you face any technical difficulties when posting
Display results as :
Advanced Search
Latest topics
CCS.N0000 ( Ceylon Cold Stores)Wed Mar 20, 2024 11:31 amHawk Eye
When Will It Be Safe To Invest In The Stock Market Again?Wed Apr 19, 2023 6:41 amකිත්සිරි ද සිල්වා
Dividend AnnouncementsWed Apr 12, 2023 5:41 pmකිත්සිරි ද සිල්වා
MAINTENANCE NOTICE / නඩත්තු දැනුම්දීමThu Apr 06, 2023 3:18 pmකිත්සිරි ද සිල්වා
SEYB.N0000 (Seylan Bank PLC)Thu Mar 30, 2023 9:25 amyellow knife
The Korean Way !Wed Mar 29, 2023 7:09 amකිත්සිරි ද සිල්වා
In the Meantime Within Our Shores! Mon Mar 27, 2023 5:51 pmකිත්සිරි ද සිල්වා
What is Known as Dementia?Fri Mar 24, 2023 10:09 amකිත්සිරි ද සිල්වා
SRI LANKA TELECOM PLC (SLTL.N0000)Mon Mar 20, 2023 5:18 pmකිත්සිරි ද සිල්වා
THE LANKA HOSPITALS CORPORATION PLC (LHCL.N0000)Mon Mar 20, 2023 5:10 pmකිත්සිරි ද සිල්වා
Equinox ( වසන්ත විෂුවය ) !Mon Mar 20, 2023 4:28 pmකිත්සිරි ද සිල්වා
COMB.N0000 (Commercial Bank of Ceylon PLC)Sun Mar 19, 2023 4:11 pmකිත්සිරි ද සිල්වා
REXP.N0000 (Richard Pieris Exports PLC)Sun Mar 19, 2023 4:02 pmකිත්සිරි ද සිල්වා
RICH.N0000 (Richard Pieris and Company PLC)Sun Mar 19, 2023 3:53 pmකිත්සිරි ද සිල්වා
Do You Have Computer Vision Syndrome?Sat Mar 18, 2023 7:36 amකිත්සිරි ද සිල්වා
LAXAPANA BATTERIES PLC (LITE.N0000)Thu Mar 16, 2023 11:23 amකිත්සිරි ද සිල්වා
What a Bank Run ?Wed Mar 15, 2023 5:33 pmකිත්සිරි ද සිල්වා
104 Technical trading experiments by HUNTERWed Mar 15, 2023 4:27 pmkatesmith1304
GLAS.N0000 (Piramal Glass Ceylon PLC)Wed Mar 15, 2023 7:45 amකිත්සිරි ද සිල්වා
Cboe Volatility Index Tue Mar 14, 2023 5:32 pmකිත්සිරි ද සිල්වා
AHPL.N0000Sun Mar 12, 2023 4:46 pmකිත්සිරි ද සිල්වා
TJL.N0000 (Tee Jey Lanka PLC.)Sun Mar 12, 2023 4:43 pmකිත්සිරි ද සිල්වා
CTBL.N0000 ( CEYLON TEA BROKERS PLC)Sun Mar 12, 2023 4:41 pmකිත්සිරි ද සිල්වා
COMMERCIAL DEVELOPMENT COMPANY PLC (COMD. N.0000))Fri Mar 10, 2023 4:43 pmyellow knife
Bitcoin and Cryptocurrency Fri Mar 10, 2023 1:47 pmකිත්සිරි ද සිල්වා
CSD.N0000 (Seylan Developments PLC)Fri Mar 10, 2023 10:38 amyellow knife
PLC.N0000 (People's Leasing and Finance PLC) Thu Mar 09, 2023 8:02 amකිත්සිරි ද සිල්වා
Bakery Products ?Wed Mar 08, 2023 5:30 pmකිත්සිරි ද සිල්වා
NTB.N0000 (Nations Trust Bank PLC)Sun Mar 05, 2023 7:24 amකිත්සිරි ද සිල්වා
Going South Sat Mar 04, 2023 10:47 amකිත්සිරි ද සිල්වා
When Seagulls Follow the TrawlerThu Mar 02, 2023 10:22 amකිත්සිරි ද සිල්වා
Re-activatingSat Feb 25, 2023 5:12 pmකිත්සිරි ද සිල්වා
SAMP.N0000 (Sampath Bank PLC)Wed Nov 30, 2022 8:24 amකිත්සිරි ද සිල්වා
APLA.N0000 (ACL Plastics PLC)Fri Nov 18, 2022 7:49 amකිත්සිරි ද සිල්වා
Banks, Finance & Insurance Sector ChartTue Nov 15, 2022 5:26 pmකිත්සිරි ද සිල්වා
VPEL.N0000 (Vallibel Power Erathna PLC)Sun Nov 13, 2022 12:15 pmකිත්සිරි ද සිල්වා
WATA - WatawalaSat Nov 05, 2022 8:44 amකිත්සිරි ද සිල්වා
KFP.N0000(Keels Food Products PLC)Sat Nov 05, 2022 8:42 amකිත්සිරි ද සිල්වා
Capital Trust Broker in difficulty?Fri Oct 21, 2022 5:25 pmකිත්සිරි ද සිල්වා
IS PIRATING INTELLECTUAL PROPERTY A BOON OR BANE?Thu Oct 20, 2022 10:13 amකිත්සිරි ද සිල්වා
What Industry Would You Choose to Focus?Tue Oct 11, 2022 6:39 pmකිත්සිරි ද සිල්වා
Should I Stick Around, or Should I Follow Others' Lead?Tue Oct 11, 2022 9:07 amකිත්සිරි ද සිල්වා
DV-2024 Program: Online RegistrationThu Oct 06, 2022 11:26 amකිත්සිරි ද සිල්වා

Information posted in this forum are entirely of the respective members' personal views. The views posted on this open online forum of contributors do not constitute a recommendation buy or sell. The site nor the connected parties will be responsible for the posts posted on the forum and will take best possible action to remove any unlawful or inappropriate posts.
All rights to articles of value authored by members posted on the forum belong to the respective authors. Re-using without the consent of the authors is prohibited. Due credit with links to original source should be given when quoting content from the forum.
This is an educational portal and not one that gives recommendations. Please obtain investment advises from a Registered Investment Advisor through a stock broker

Go down
Top contributor
Top contributor
Posts : 3803
Join date : 2014-02-24

Sri Lanka’s EPF bought shares with no approval, no analysis Empty Sri Lanka’s EPF bought shares with no approval, no analysis

Wed Jan 29, 2020 8:19 pm
Message reputation : 100% (1 vote)

Sri Lanka’s EPF bought shares with no approval, no analysis: forensic report
Monday January 27, 2020 07:25:18

ECONOMYNEXT – Sri Lanka’s Employees Provident Fund, a state-managed retirement fund of private workers had bought stocks without analysis, without approval of an investment committee, and there were no deal tickets to show who bought them in some cases, a forensic report has said.

The EPF is managed by the central bank which in turn is government by a Monetary Board, headed by the governor.

Large volumes of stock had been bought from firms connected to the Perpetual group and related firms linked to Arjun Aloysius.

A forensic report conducted by KPMG, auditors, said some investments had been made without approval from an investment committee or the monetary board, without analysis and there were irregularities in adding companies to the investment lists.

In some case there were deal tickets or settlement sheets were not signed.

The EPF had bought 737 million rupees of stock in Brown and Company Plc for which document showed investment committee approval from SHM Rishan, who was involved in PC House, a listed company which was removed from the stock exchange for non-compliance.

“..The deal ticket for the transaction was unsigned hence the dealer executing the trade could not be identified,” the report said.

The EPF had made losses of 1.1 billion rupees on a portfolio of 6.6 million shares of Browns.

The EPF had invested in banks against the investment and trading guideline apparently on the
instruction of the then governor Nivard Cabraal. They were later ratified by the investment committee and the monetary board.

No approvals were available for investments of 463 million rupees in non-bank financial institututions.
Companies linked to the family of ex-Governor Arjuna Mahendran’s son-in-law had also sold stocks to the EPF at high prices, which made losses.

On March 04 and March 11, the EPF had bought 965 million rupees of stock in Ceylon Grain Elevators. The deals were not in the investment committees weekly plans but were ratified later. The EPF had bought a total of 1,051 million worth of Grain Elevators.

About 95 percent of the stock was bought from Perpetual Capital Private Limited. The EPF had lost 651 million rupees by the review period. An EPF Superintend had said it was a management decision and the Governor explained that prospects were good for poultry.

The EPF had bought stock in Carsons Cumberbatch for 2.5 billion rupees in October 2010, a major counterparty was an entity called Thurston Investments.

Media reports had said that the Thurston Investments was linked to the grandfather of Arjun Aloysius, However the forensic aditors said there were no know your customer details of the counterparty to confirm whether it was the same company.

In the case of the 801 rupees spent on buying shares in Galadari Hotels Lanka Plc, at the highest price in the market, deal tickets or settlement sheets were not available. No evidence was also found on financial investments.

It was subsequently ratified by the Investment Committee.

In the case of Laugfs Gas, the middle office had calculated the value at 40 rupees a share, and purchases of up to 48 rupees was given for 33 million shares, breaching a shareholding limit set for the fund, though no approval was given.

Employees had stated that having consulted with the Governor it was agreed that the price was fair. It was subsequently ratified by the Investment Committee.

There was no impairment loss on the stock at the review date.

EPF had also bought shares of SriLankan Airlines. There was a letter from the Ministry of Finance addressed to the Bank of Ceylon but not the EPF. Sri Lanka Employees had said the investment could have been made in the ‘national interest’ with instructions from the top-most level.

EPF had also bought SriLankan Catering preference share where from Governor Cabraal had been involved in decision-making. Employees said it may have been due to instructions from the government.
The EPF had also bought stock at Canwill Holdings Private Limited.

Under the investment policy statement, EPF investment committee and fund management staff were expected to give statements of economic interest of themselves and family members. The requirement was removed in 2011 and put back in 2018.

The statements however were in sealed envelopes and there was no review mechanism. They were to be opened only in the case of a court order.

The report said controls on conflicts of interest of EPF employees appeared to be ineffective and there was no monitoring mechanism to track employee trading despite them being potentially privy to EPF trades.

The auditors said comments were asked from former Governors Cabraal and Arjuna Mahendran, but there was no response.

However ex-Governor Cabraal has said the forensic audits were biased and inaccurate.

Sri Lanka forensic audits on bond sales biased and inaccurate, part of cover-up: Cabraal

Top contributor
Top contributor
Posts : 6327
Join date : 2014-02-24
Age : 58
Location : Waga

Sri Lanka’s EPF bought shares with no approval, no analysis Empty Re: Sri Lanka’s EPF bought shares with no approval, no analysis

Thu Jan 30, 2020 9:35 am
Message reputation : 100% (1 vote)
Thanks Back
Back to top
Permissions in this forum:
You cannot reply to topics in this forum