EPF assets rise 13% to Rs. 4.94 t in 2025

Sri Lanka’s Employees’ Provident Fund (EPF) recorded strong growth in 2025, with its total value approaching the Rs. 5 trillion mark, supported by historically high member contributions and steady investment income.

According to the Central Bank of Sri Lanka Annual Economic Review 2025, the net worth of the Fund rose by 13.0% to Rs. 4,942.9 billion by end-2025, compared to Rs. 4,375.7 billion recorded a year earlier. The EPF continues to dominate the country’s superannuation sector, accounting for 80.5% of total assets.

Total member contributions increased significantly during the year, rising by 15.6% to Rs. 270.8 billion. Meanwhile, refunds paid to members and their legal heirs declined by 6.4% to Rs. 176.0 billion. As a result, net member contributions more than doubled to Rs. 94.8 billion in 2025, up from Rs. 46.3 billion in 2024.

The Fund’s investment performance also remained robust, with total investment income growing by 7.6% to Rs. 552.7 billion. Interest income continued to be the primary source of earnings, increasing by 11.4% to Rs. 506.9 billion.

In addition, improved performance at the Colombo Stock Exchange contributed to higher fair value gains and dividend income, further supporting overall returns.

The EPF maintained operational efficiency during the year, recording an operating expenses-to-gross income ratio of just 0.6%. However, tax expenditure rose to Rs. 69.5 billion, reflecting the higher investment income generated.

The Governing Board of the Central Bank approved an interest rate of 10.75% on member balances for 2025, ensuring continued returns to contributors as the Fund edges closer to the Rs. 5 trillion milestone.