Sri Lanka’s Employees’ Provident Fund (EPF) experienced impressive growth in 2025, nearing the Rs. 5 trillion threshold, thanks to record-high contributions from members and consistent investment returns.
As reported in the Central Bank of Sri Lanka’s Annual Economic Review for 2025, the Fund’s net worth increased by 13.0%, reaching Rs. 4,942.9 billion by the end of the year, up from Rs. 4,375.7 billion the previous year. The EPF remains a leading player in the country’s retirement savings sector, representing 80.5% of total assets.
Member contributions saw a substantial rise, climbing by 15.6% to Rs. 270.8 billion during the year. In contrast, the refunds issued to members and their beneficiaries decreased by 6.4% to Rs. 176.0 billion. Consequently, net contributions from members more than doubled to Rs. 94.8 billion in 2025, compared to Rs. 46.3 billion in 2024.
The Fund’s investment outcomes also showed strong performance, with total investment income increasing by 7.6% to Rs. 552.7 billion. Interest income, which remains the principal source of revenue, grew by 11.4% to Rs. 506.9 billion.
Moreover, the improved performance of the Colombo Stock Exchange played a significant role in enhancing fair value gains and dividend income, which further boosted overall returns.
Throughout the year, the EPF demonstrated operational efficiency, achieving an operating expenses-to-gross income ratio of merely 0.6%. However, tax expenses rose to Rs. 69.5 billion, attributed to the higher investment income obtained.
The Central Bank’s Governing Board sanctioned an interest rate of 10.75% on member balances for 2025, ensuring that contributors receive continued returns as the Fund approaches the Rs. 5 trillion milestone.
