The Department of Inland Revenue has lifted investment restrictions placed on private pension and provident funds, along with gratuity, trust and savings funds, the Security and Exchange Commission said.

The new gazette now enables a higher maximum exposure of 20% of the funds to debentures and other stocks.

A further 40% of all funds are required to be invested in government securities whilst the remainders of the funds are to be invested by way of deposits in other commercial banks.

Prior to the new gazette, such funds were directed to invest a minimum of 50% into the National Savings Bank or into government securities at which point, the remaining 50% could be invested by way of deposits in other commercial banks. (Channa Fernandopulle)