The total value of the Employees’ Provident Fund (EPF) expands 12.1 per cent (Rs 341.8 billion) to Rs 3,166.1 billion as at end 2021 from Rs 2,824.3 billion reported a year earlier.
According to the Central Bank of Sri Lanka, this growth was an outcome of a combined effect of the net contributions of the members and the income generated through investments of the fund.
Total liability of the EPF to the members stood at Rs 3,066.9 billion as at end 2021 recording a 10.8 per cent increase from Rs 2,767.8 billion a year earlier.
The total contribution for 2021 increased by 9.9 per cent to Rs 165.7 billion, while the total amount of refunds to members and their legal heirs stood at Rs 118.2 billion in 2021, up 7.7 per cent over 2020.
The net contribution to the fund was Rs 47.5 billion compared to Rs 41.0 billion recorded in the previous year.
The annual profit of the Fund increased 22.1 per cent to Rs 299.1 billion in 2021 from Rs244.9 billion recorded in the previous year, mainly due to the increase in the net gain on financial instruments at fair value through profit or loss (listed equities) by Rs 36.8 billion.
The total investment portfolio of the Fund grew 12.2 per cent to Rs 3,173.3 billion as at end 2021 from Rs 2,829.5 billion as at end 2020.
As at end 2021, the investment portfolio consisted of 93.2 per cent in government securities, 3.8 per cent in equity, 0.8 per cent in corporate debentures, 1.8 per cent in fixed deposits, and the remaining 0.4 per cent in Reverse Repurchase agreements.
The total investment income of the Fund stood at Rs 342.2 billion in 2021 and recorded an increase of 19.9 per cent from a year earlier.
Interest income continued to be the major source of income to the Fund which grew 5.9 per cent to Rs 293.7 billion in 2021 from Rs 277.4 billion in 2020.
Dividend income increased 124 per cent to Rs 6.7 billion in 2021 compared to Rs 3 billion in 2020.
Net Gain/Loss on financial instruments at fair value through profit or loss recorded a net gain of Rs 41.8 billion in 2021 compared to net gain of Rs 5 billion in 2020.
The Fund earned a total gross income of Rs 342.4 billion in 2021, recording an increase of 19.9 per cent compared to the previous year.
By Mario Andree