The Employees’ Provident Fund (EPF) has strengthened its position as the leading entity in the superannuation sector, accounting for 81.0% of the sector’s total assets by the end of 2024.
The Fund’s net worth rose by 12.6% year-on-year to Rs. 4,375.7 billion, up from Rs. 3,886.7 billion in 2023, primarily driven by robust investment returns and a rebound in net contributions.
Total contributions received during 2024 increased by 11.3% to Rs. 234.4 billion, while refund payments to members and legal heirs fell by 12.9% to Rs. 188.1 billion. This shift translated into a positive net contribution of Rs. 46.3 billion for the year, a significant turnaround from the Rs. 5.3 billion net outflow recorded in 2023.
The EPF recorded an investment income of Rs. 513.8 billion in 2024, marking a 6.8% increase from Rs. 481.1 billion the previous year. Interest income, the Fund’s primary revenue stream, rose by 2.9% to Rs. 455.1 billion. Dividend income surged by 82.9% to Rs. 5.5 billion, while net fair value gains from listed equity investments more than doubled to Rs. 49.2 billion.
The Fund maintained an operating expenses to gross income ratio of just 0.6%, demonstrating continued operational efficiency. However, its tax expenditure climbed to Rs. 64.1 billion, reflecting higher investment earnings.
In light of the Fund’s performance, the Governing Board of the Central Bank has approved an interest rate of 11.00% on member balances for 2024, subject to the approval of the Ministers of Labour and Finance.
These details were disclosed in the Central Bank of Sri Lanka’s Annual Economic Review 2024.
