The Employees’ Provident Fund (EPF) consolidated its position as the leading institution in the pension sector, accounting for 81.0% of the sector’s total assets at the end of 2024. The fund’s net worth increased by 12.6% year-on-year to Rs 4,375.7 billion, up from Rs 3,886.7 billion in 2023, mainly due to strong investment returns and net contribution returns.
Total contributions received in 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. 10 billion. The year was Rs. 46.3 billion, a significant turnaround from the net outflow of Rs. 5.3 billion recorded in 2023.
In 2024, the Employees Provident Fund reported investment income of Rs. 513.8 billion, an increase of 6.8% from Rs. 481.1 billion in the previous year. The Fund’s primary income stream, interest income, rose by 2.9% to Rs. 455.1 billion. Dividend income rose 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 demonstrated continued operational efficiency, with an operating expense to gross income ratio of just 0.6%. However, its tax expense increased to Rs. 64.1 billion, reflecting higher investment earnings.
Considering the performance of the Fund, the Governing Council 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.
This information was disclosed in the Central Bank of Sri Lanka’s Annual Economic Review 2024.
