Thursday Apr 23, 2026
Thursday Apr 23, 2026
Thursday, 23 April 2026 05:57 - - {{hitsCtrl.values.hits}}
The Employees’ Provident Fund (EPF) recorded a 13.6% increase in net worth to Rs. 4.9 trillion at end-2025, up from Rs. 4.4 trillion a year earlier, according to the Central Bank of Sri Lanka’s (CBSL) Annual Economic Review 2025.
The expansion was supported by higher member contributions and investment income.
Total contributions rose by 15.6% to Rs. 270.8 billion, while refunds to members and legal heirs declined by 6.4% to Rs. 176.0 billion. As a result, net member contributions increased to Rs. 94.8 billion from Rs. 46.3 billion in 2024.
Total investment income of the Fund rose by 7.6% to Rs. 552.7 billion in 2025 from Rs. 513.8 billion in the previous year. Interest income remained the main source, increasing by 11.4% to Rs. 506.9 billion from Rs. 455.1 billion.
The CBSL noted that the performance of the Colombo Stock Exchange (CSE) contributed to higher fair value gains and dividend income during the year.
Operating expenses remained contained, with the operating expenses-to-gross income ratio at 0.6%, while tax expenditure increased to Rs. 69.5 billion in line with higher income.
The Governing Board of the CBSL approved an interest rate of 10.75% on member balances for 2025.
The EPF accounted for 80.5% of total assets in the superannuation sector, maintaining its position as the largest retirement savings fund in the country.
During the year, the EPF adjusted its investment mix. The Fund increased exposure to corporate debentures and Environmental, Social, and Governance (ESG)-linked Bonds, while also managing its listed equity portfolio through a combination of selective divestments and participation in rising market segments.
The CBSL said these changes form part of an ongoing effort to balance returns and risk over the long term, while maintaining stability in member returns.
The EPF remains the largest pool of long-term savings in the domestic financial system, with its investment decisions continuing to have a significant influence on capital markets.
