EPF Solidifies Dominance in Superannuation Sector with Strong 2024 Growth

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By: Staff Writer

April 17, Colombo (LNW): The Employees’ Provident Fund (EPF) has firmly reinforced its leadership in Sri Lanka’s superannuation sector, commanding an impressive 81.0% share of the sector’s total assets by the end of 2024. This dominant position highlights the Fund’s ongoing financial stability and its critical role in safeguarding retirement savings for the country’s workforce.

EPF’s net worth rose significantly by 12.6% year-on-year, reaching Rs. 4,375.7 billion compared to Rs. 3,886.7 billion in 2023. This robust growth was fueled primarily by strong investment performance and a notable recovery in net contributions.

Total member contributions climbed by 11.3% to Rs. 234.4 billion in 2024. Simultaneously, refund payments to members and their legal heirs dropped by 12.9% to Rs. 188.1 billion, resulting in a net positive contribution of Rs. 46.3 billion for the year. This marks a dramatic reversal from the Rs. 5.3 billion net outflow recorded in 2023.

On the investment front, the EPF achieved an income of Rs. 513.8 billion in 2024, reflecting a 6.8% increase from the previous year’s Rs. 481.1 billion. Interest income—its primary revenue stream—rose modestly by 2.9% to Rs. 455.1 billion.

Meanwhile, dividend income saw a substantial surge of 82.9% to Rs. 5.5 billion, and net fair value gains from listed equity investments more than doubled, reaching Rs. 49.2 billion. These figures underscore the Fund’s diversified and strategic investment approach, which has contributed significantly to its overall financial strength.

In terms of operational performance, the EPF maintained an impressively low operating expenses to gross income ratio of just 0.6%, reflecting a high degree of cost efficiency. However, with the rise in investment income, tax expenses also increased, reaching Rs. 64.1 billion in 2024.

Reflecting the strong financial performance, the Governing Board of the Central Bank of Sri Lanka has proposed an interest rate of 11.00% on member balances for the year 2024. This proposed rate is currently pending approval from the Ministers of Labour and Finance.

These financial highlights and strategic developments were outlined in the Central Bank of Sri Lanka’s Annual Economic Review 2024, reinforcing the EPF’s vital role in ensuring long-term financial security for its members.

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