The unaudited financial statements of the Employees’ Provident Fund for the year ended 31st December 2007 are disclosed below for the information of the general public. These financial statements of the Fund comprise financial performance of both the EPF Department of the Central Bank of Sri Lanka and the EPF Section of the Labour Department. The audited financial statements will be presented to the Parliament in terms of Section 6(4) of the Employees’ Provident Fund Act No. 15 of 1958.Financial statements as required under 5 (I)(i) of the Employees ‘ Provident Fund Act were submitted to Hon. Ministers of Finance and Planning and Labor relations and Man power.

Summarized Income Statement
For the year ended 31st December 2007

                                                                                                                                            (Rs Million)

Item	2007	2006	change %
Total gross income  Less: Total operating  expenditure           EPF: Central Bank           EPF  section: Labour Department    Net Income before Income Tax  Less: Income Tax  Net Income after Income Tax   Add:  Brought forward balance of the previous year income and expenditure account (after making adjustments)   Add: Effect of change of accounting policies  Net Income available for distribution to the members   Less: Distributions   Interest paid on refund benefits (current year)  Transfer to reserves Profit Equalization Reserve Fund General Reserve fund Interest at 11.20% on members’ balances as at 31.12.2007  (10.1% as at 31.12.2006)	59,423   295 251    58,877 4,452 54,425   187     0 54,612   879    (1,725) 0 55,240	46,390    192 233   45,965 2,762 43,203    319     4,188 47,710   622    1,450 1,650 43,787	28.1   53.6 7.7   28.1 61.2 25.9   (41.4)       14.5    41.3           26.2
Carry forward balance for the next year	218	201	8.5

Summarized Balance Sheet

As at 31^st December 2007                

                                                (Rs Million)

Interest paid to members

Having taken into account the increase in the investment income, EPF has declared an interest rate of 11.20% on member balances at the end of 2007.

However, as the interest is paid on the year-end balance without considering the holding period of monthly contributions, the effective rate of interest was 11.40% .

Investment portfolio

Income

The gross income of the Fund amounting to Rs. 59,423 million in 2007 comprised of the following.

Expenses 

Operating expenditure amounting to Rs 546 million accounted for only 0.9% of the total gross income of the Fund.

Membership

The Fund had an estimated total of 11.9 million member accounts at the end of 2007.

o   Currently Contributing Member Accounts   2.1 million

o   Currently Non-contributing Member Accounts   9.8 million 

Member contributions

The Fund received Rs 40,574 million as member contributions during 2007, an increase of 16.1% over the last year’s contribution of Rs 34,933 million.

Refund of benefits to members

The Fund refunded a sum of Rs 21,831 million during 2007 in respect of 97,936 refund applications.

Housing loan facilities

The Fund issued 12,969 member balance certifications in respect of housing loans amounting to Rs 2,872 million.

Rs 1,240 million was allocated in respect of repayment of housing loan installments in arrears.

Key performance indicators

News Headlines

EPF website launched

EPF Member Information through e-Service of EPF

Collection of Contributions through Electronic Media

EPF Is Going For SAP…

Member Re-registration project

Re-engineering EPF

EPF Mobile Services