Sri Lanka to amend EPF Act to ensure 9% annual return to members following Domestic Debt Optimisation

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The Cabinet of Ministers has approved a proposal to amend Employees’ Provident Fund (EPF) Act to ensure a minimum of 9 percent annual interest rate to members during the next four-year period (2023 to 2026) following Domestic Debt Optimisation.

Accordingly, the Cabinet on Monday (August 07) approved the resolution submitted by President Ranil Wickremesinghe, in his capacity as the Minister of Finance, Economic Stabilization and National Policies, to take all required measures to amend the EPF Act No. 15 of 1958.

This was based on the annual interest benefit percentages paid for EPF members during the past five-year period.

Under the Domestic Debt Optimisation, the maturity of treasury bonds held by superannuation funds were extended from 2027 to 2038 with a step-down coupon structure of 12 percent until 2025 and 9 percent until maturity.

“The government has recognised the requirement of ensuring the payments and benefits of the  Employees’ Provident Fund without any burden to the pension payments and benefits of the members of that fund due to the local treasury bonds idealizing programme,” the Department of Government Information said.