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Policy plans for 2010:
EPF to run on a banking model
Ramani Kangaraarachchi
The Central Bank will initiate the transformation of the framework of
Employees’ Provident Fund (EPF) to a Banking Model under its policy
plans for 2010, Central Bank Governor, Ajith Nivard Cabraal said.
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EPF
Fund
* Two million active
accounts
* 66,960 employees
* Rs. 750 billion in reserve
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 Making a presentation on Monetary and Financial Sector Policies for
2010 at Central Bank on Monday, he said that the Central Bank designs
and implements policies as per its agency and ancillary functions for
sustainable economic growth and it would establish a sound risk return
profile to generate a positive real rate of return over the long-term.
Cabraal said the CB will also enroll the ‘informal sector’ labour
force and self employed persons amounting to 500,000 by 2012 and
2,000,000 by 2015 and facilities will be provided for voluntary and
convenient contributions by employers and employees.
Elaborating on the progress of EPF made in 2009, the Governor said
the fund amounting to Rs 750 billion grew by 16 percent in 2009 and the
returns earned while ensuring the 100 percent safety of the fund. It has
facilitated the Government and the private sector by providing debt and
equity capital as well. The fund declared a long-term real rate of
return of 1.6 percent for its members over the past 25 year period and
demand for the EPF services has increased significantly.
It commenced work relating to introducing a new member accounts
system based on NIC card number, he said.
The fund has more than 2 million active accounts and 66,960
employers.
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