The Employees’ Provident Fund (EPF) is set to explore methods for diversifying its investment portfolio with the aim of generating a higher risk-adjusted rate of return while ensuring the overall safety of the overall fund, Central Bank announced..
“As Sri Lanka’s largest superannuation fund, with the Central Bank of Sri Lanka as its custodian, the EPF showcased resilient financial performance throughout 2023, navigating challenges such as economic uncertainties and the impact of the domestic debt optimization (DDO) operation,” the Central Bank Governor Nandalal Weerasinghe said.
He made these revelations when he unveiled the ‘Annual Policy Statement 2024’ on Wednesday10. The fund effectively carried out the provision and facilitation of refund payments, member-related services and various other services despite the obstacles.
Looking ahead, the EPF focuses on improving operational efficiency to deliver efficient and effective services to its stakeholders.
A key initiative involves implementing of a near-paperless operating system equipped with real-time document scanning to enhance service quality.
Additionally, efforts to strengthen the electronic collection procedure, providing multiple payment avenues for employers, will continue to offer flexibility.
He said a comprehensive Information and Communication Technology (ICT) solution is on the horizon for the EPF to re-engineer and modernize the existing process.
The Central Bank of Sri Lanka (CBSL) plans to modernise operations of the Employees’ Provident Fund (EPF) through digital enhancements and diversify the fund’s investment portfolio to generate higher risk-adjusted returns.
CBSL said in its Annual Policy Statement for 2024 that the EPF will go “near-paperless” in 2024, with a number of technological enhancements also on the cards.
“Going forward, the EPF is committed to enhancing operational efficiency to deliver efficient and effective services to its stakeholders. Service quality is to be improved through the implementation of a near-paperless operating system with real-time document scanning,” he added.
The initiatives taken to strengthen the electronic collection procedure by providing multiple payment avenues would continue to provide more flexibility to employers, the bank said.
“A comprehensive ICT solution would also be implemented at EPF with the view of re-engineering and modernising the existing process. EPF is to seek avenues to diversify its investment portfolio to generate a higher risk-adjusted rate of return while ensuring the safety of the overall fund,” CBSL said.
The island nation’s largest pension fund has almost 21-million member accounts including 18.3 million non-contributing accounts due to some members having multiple number of accounts. As of end-2022, the fund is worth 3.38 trillion rupees or 10.6 billion US dollars.By end 2022, a majority — 95.7 percent — of this was in government securities, while 84.1 billion rupees was invested in listed companies in the Colombo Stock Exchange, according to official data
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