20. RETIREMENT BENEFIT OBLIGATIONS

Movement in the liability recognised in the Balance Sheet:             Group       Company (All amounts in Sri Lanka Rupees millions)   2004   2003   2004   2003 At beginning of year   493   429   475   411 Current service cost (Note 3)   77   155   71   152 Contributions paid                 - VRS employees   (30)   (68)   (30)   (68) - Other employees   (20)   (23)   (19)   (20)         At the end of year   520   493   497   475         Current (due within one year)                 Liability for VRS employees   –   (36)   –   (36) Other employees   (10)   (9)   (10)   (9)             (10)   (45)   (10)   (45)         Non-current (due after one year)   (510)   (448)   (487)   (430)         As stated in Accounting Policy N, an actuarial valuation was carried out by an independent actuary in respect of all employees of SLTL as at 31 December 2003. Roll up of the provision was carried out by the Company in ascertaining the liability as at 31 December 2004. The principal actuarial assumptions used were as follows:     Company     2004 Discount rate   11.0% Future salary increases   9.0% Future pension increases   3.2% In addition to the above, demographic assumptions such as mortality, withdrawal, retirement age and financial assumptions such as rate of discount and salary increases were considered for the actuarial valuation.

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