Sri Lanka to increase EPF payment: Budget 2015

Oct 24, 2014 (LBO) – Sri Lanka’s Employee’s Provident Fund (EPF) payment from the employer to be increased to 14 percent, President Mahinda Rajapaksa said presenting the budget for 2015. Sri Lanka’s Central Bank, which manages the EPF said it had made profits of 101.7 billion rupees in 2009, 111.5 billion rupees in 2010, 107.5 billion rupees in 2011, 111.8 billion rupees in 2012 and 125.6 billion rupees in 2013.

It had declared “impressive rates of return of 13.75 per cent in 2009, 12.5 per cent in 2010, 11.5 per cent in 2011, 11.5 percent in 2012 and 11 percent in 2013 to its members,” the EPF department of the Central Bank said in a statement. According to the EPF Act, an employee is required to contribute a minimum of 8 percent and the employer a minimum of 12 percent of the total salary of the employee monthly, to the EPF.

EPF, which is under full state control is the largest retirement fund of private sector workers.

EPF said it has invested about 92 percent of its funds in government securities, 6 percent in stocks and 2 percent in corporate debt and short term government securities.