20. RETIREMENT BENEFIT OBLIGATIONS   Close Window  
 
(All amounts in Sri Lanka Rupees millions)
Movement in the liability recognised in the Balance Sheet:
  Group Company
  2003 2002 2003 2002
At beginning of year 429 330 411 329
Liabilities acquired in business combination 16
Current service cost (Note 3) 155 99 152 98
Contributions paid        
- VRS employees (68) (68)
- Other employees (23) (16) (20) (16)
At the end of year ---------
493
======
---------
429
======
---------
475
======
---------
411
======
         
Current (due within one year)        
Liability for VRS employees (36) (36)
Non-current (due after one year) ---------
457
======
---------
429
======
---------
439
======
---------
411
======
         
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.

The principal actuarial assumptions used were as follows:

  Company
  2003
Discount rate 11%
Future salary increases 9%
Future pension increases 3.2%
   
In addition to the above, demographic assumptions such as mortality, withdrawal and disability and retirement age were considered for the actuarial valuation.

 
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