EPF net worth soars to Rs. 4.37 tn as real returns hit decade high

Sri Lanka’s Employees’ Provident Fund (EPF), the nation’s largest retirement fund, reported a record 12.6 percent year-on-year surge in net worth to Rs.4.37 trillion by the end of 2024, up from Rs. 3.89 trillion in 2023. The growth was driven by robust investment income and higher contributions.

- By NISHEL FERNANDO

The Central Bank’s Governing Board approved an 11 percent nominal interest rate for 2024, down from 13 percent in 2023. However, deflation of 1.7 percent in 2024 pushed the real interest rate to 12.7 percent, up from 9 percent in 2023. This marked the first double-digit real return in recent history, which contrasts sharply with 2021 and 2022, when inflation eroded returns, leaving EPF members with negative real yields.