The Employees’ Provident Fund (EPF) maintained its dominance in the superannuation sector, holding 81% of the sector’s total assets by the end of 2024.
The Fund’s net worth grew by 12.6% year-on-year to Rs. 4,375.7 billion, up from Rs. 3,886.7 billion in 2023, driven by strong investment returns and rising net contributions.
In 2024, total contributions to the EPF rose by 11.3% to Rs. 234.4 billion, while refund payments declined by 12.9% to Rs. 188.1 billion.
This resulted in a positive net contribution of Rs. 46.3 billion, a significant recovery from the net outflow of Rs. 5.3 billion in 2023.
The Fund earned Rs. 513.8 billion in investment income during 2024, up 6.8% from the previous year.
Interest income increased by 2.9% to Rs. 455.1 billion, while dividend income rose sharply by 82.9% to Rs. 5.5 billion.
Net fair value gains from listed equity investments more than doubled to Rs. 49.2 billion, reflecting strong market performance.
Operational efficiency remained high, with the Fund keeping its operating expenses to gross income ratio at 0.6%.
However, tax expenses increased to Rs. 64.1 billion due to higher investment earnings.
Based on the Fund’s performance, the Central Bank’s Governing Board approved an 11% interest rate for member balances in 2024, pending final approval from the Ministers of Labour and Finance.
These updates were published in the Central Bank of Sri Lanka’s Annual Economic Review for 2024.
