May 22, 2010 (LBO) – Active contributors to Sri Lanka’s Employees’ Provident Fund (EPF) of private sector workers dropped by 300,000 in 2009, a year in which the country went through an economic downturn, official data showed. EPF’s active accounts dropped 12 percent to 2.0 million from 2.3 million a year earlier.
Contributing companies and employers fell by 2,625 to 60,000, down 4.2 percent from a year earlier, according to data published in the central bank’s annual report.
In 2008 contributing members increased 2.18 percent to 2.3 million while contributing employers rose from 61,116 to 62,625.
The fund also had 10.68 million inactive accounts in 2009 to which contributions were no longer made, up from 10.16 million a year earlier.
According to official statistics however economic output grew by 3.5 percent, though international trade collapsed and state revenues, which are related to economic activity, plunged.
Many companies especially in exports stopped hiring last year and allowed people leave.
Others actively downsized and some closed down.
The contributors to EPF represent the formal sector in business. According to Sri Lanka’s department of Census and Statistics Sri Lanka’s economy