Investments

Legislation and investment policy

Section 8 (d) & Section 9 of the Parliamentary Act No. 46 of 1980 empowers the Board to invest its funds. Investment objectives, Asset Allocation & other guide lines and Code of Conducts & Ethics for the staff of Investment Division approved by the Board of Directors have been stipulated in the Investment Policy.

Investment Objectives

The primary objective in the investment of Board’s funds is to ensure the safety of principal, while managing liquidity to pay the financial obligations of the Board, and providing optimum investment return using authorized instruments.

SAFETY

The safety of capital is the foremost objective of the Board. A substantial portion of the investment portfolio will be invested in gilt-edged government securities in order to ensure safety of the capital
LIQUIDITY

The Investment portfolio shall remain sufficiently liquid to enable the Board to meet all operating requirements that might be reasonably projected.
RETURN ON INVESTMENT

The Investment portfolio shall be designed to obtain the highest available return, taking into account the constrains and cash flow needs. Investment Division shall seek to obtain the highest available return using authorized investment instruments.

Approved Asset Allocation

Fixed Income Investments

(a) Gilt-edged securities Treasury Bills/Treasury Bonds/Rupee Loans

(b) Other Fixed income securities (maximum) ( subject to conditions )

(c) Short term Repos

Equities - shares & units

Total

87 %

5 %

2 %

6 %

100 %

Fixed Income Investments
(a) Gilt-edged securities Treasury Bills/Treasury Bonds/Rupee Loans	87%
(b) Other Fixed income securities (maximum) ( subject to conditions )	2%
(c) Short term Repos	5%
Equities
(Maximum) - Shares & Units (subject to conditions)	6%
Total	100%

Investment portfolio as at 31-12-2021

Investments in Fixed Income Securities

Govt. Securities

Fixed Deposits (State Banks)

Other Fixed Income Securities

Sub Total

Rs. Mn.

352,544

28,492

13,875

394,911

86.08 %

6.96 %

3.39 %

96.43 %

Equities Investment

Investment in Subsidiaries

Units

Sub Total

Rs. Mn.

13,941

471

242

14,654

3.40 %

0.12 %

0.06 %

3.58 %

Grand Total

409,565

100.00 %

Investments in Fixed Income Securities
Govt. Securities	Rs. Mn.	297,027	80.11%
Fixed Deposits (State Banks)	Rs. Mn.	52,965	14.29%
Other Fixed Income Securities	Rs. Mn.	9,012	2.43%
Govt. Guaranteed Securities	Rs. Mn.	715	0.19%
Sub Total	Rs. Mn.	359,719	97.02%
Equities
Shares	Rs. Mn.	10,354	2.79%
Investment in Subsidiaries	Rs. Mn.	471	0.13%
Units	Rs. Mn.	215	0.06%
Sub Total	Rs. Mn.	11,040	2.98%
Grand Total	Rs. Mn.	370,759	100.00%