Inflation ( CCPI)1.5% (Oct 2023)
GDP-3.1% (2Q 2023)
Unemployment5.2% (2Q 2023)
3M T-Bill Rate15.29%
12M T-Bill Rate12.94%
2Y T-Bond Rate14.45%/ 14.50%
4Y T-Bond Rate14.70% / 14.80%
Reserves $3.56Bn (Oct 2023)
Cum. Trade Deficit $3,307 Mn (Sep 2023 cumulative)
Cum. Fiscal DeficitLKR 1,614 Bn (Sep 2023)

EPF has a positive net cash flow of nearly LKR 30Bn every year

IMF & Sri LankaMay 4, 2023
EPF has a positive net cash flow of nearly LKR 30Bn every year

EPF is at the center of Domestic Debt Restructuring (DDR) news as it would be a possible candidate to absorb the DDR hit. EPF holds a massive LKR 3.4 Trillion in funds from the public where 95% of that money has been lent to the government. EPF carries net positive cashflow on average of LKR 30Bn per year.

Due to the size of the fund and the complexity of executing a DDR on the public, authorities would possibly restructure the EPF funds to bail out the government.


Charts represents an assessment of the market environment as of the date indicated and it is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision. This document contains general information only and does not take into account an individual’s financial circumstances. An assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial advisor before making an investment decisions.