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Sri Lanka central bank responds to media reports over superannuation fund.

June 29, 2006 (LBO) – Sri Lanka’s Central Bank, which is the custodian of the superannuation fund of the country's private sector workforce said it's the 405 billion rupee fund has been giving returns higher than bank deposits, and member balances were safe. The bank said it was responding to recent media reports.

Central Bank says 175 EPF employees were not terminated recently, but a service contract with Rems Data Systems (Pvt) Limited which was engaged in computerising the documents of the fund had ended in December 2005.

"The expiry of the service contract with Rems has been misinterpreted in certain quarters as terminating of 175 casual employees of the Central Bank of Sri Lanka (CBSL)," Central Bank said Thursday.

"As the EPF has already explained the correct position in this regard on several occasions through the media, it is emphasized that the CBSL has never expelled any employee of the EPF."

At the end of 2005 the EPF had a total investment of 405 billion rupees of which more than 98 percent was invested in government securities while the balance 2-percent was in other secured investments, including investments in the equity market.

"The investments in the equity market in 2005 generated an income of 908 million rupees. T

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