EPF interest rates to be increased to 13%

Steps are being taken to increase the interest rate of the Employees’ Provident Fund (EPF) from the existing 9% to 13% with effect from 2023, State Minister of Finance Ranjith Siyambalapitiya said.

Accordingly, the payment of 13% interest rate for the EPF will be ensured for the year 2023, due to good investment performance of the fund, according to the minister.

The Finance State Minister made these comments in response to a question raised by a journalist while attending a meeting held in Yatianthota area of Kegalle district.

Thus, Siyambalapitiya further clarified that the accusations raised by some stakeholders that the Employees’ Provident Fund is being destroyed in the past period are meaningless and that the government has decided to increase the amount from 9% to 13% for the year 2023, exceeding the interest rate that was adopted by the Parliament.

The largest fund in the country is the EPF with 2.7 million active members, the State Minister mentioned, pointing out that the biggest challenge in the debt restructuring was related to the debts with the EPF. 

“Many people in the Parliament as well as through the media and in the society accused the Employees’ Provident Fund of a huge loss during the debt restructuring, but the government has given a very reasonable solution for this”, he added.
 
Meanwhile, the Central Bank of Sri Lanka has given its approval for the application of 13% as the interest rate on EPF member balances as of 31 December 2023.