📈 EPF Exits Canwill Holdings, Recovers Rs. 5 Bn Capital

The Employees’ Provident Fund (EPF) has fully exited its unlisted equity stake in Canwill Holdings Ltd., recovering its original Rs. 5 Bn capital following a restructuring arrangement with the Government of Sri Lanka. • Key Transaction Details: • Capital Recovery: EPF recovered its full Rs. 5 Bn initial investment by transferring its shareholding to the Government by late 2025. • Portfolio Realignment: The asset has been removed from EPF’s portfolio, with recovered funds redeployed into active, income-generating investments. • Upside Retained: Under the transfer agreement, EPF retains a legal claim to receive any additional proceeds if the Government sells the asset at a higher future valuation. • Asset Valuation & Background: • Performance: The investment previously yielded zero returns for the country's largest retirement fund, prompting the exit strategy. • IFRS Compliance: CBSL Governor Dr. Nandalal Weerasinghe noted that unlisted equity valuations fluctuate yearly based on International Financial Reporting Standards (IFRS) mark-to-market assessments. This exit allows Sri Lanka’s primary pension fund to optimize liquidity and focus capital on yield-generating instruments to protect member returns.