Fact Check
FactCheck considered the word “strongest” as used by the minister to signify either the largest fund, or the fund with the highest rate of return.
To check this claim, FactCheck looked at official sources from multiple countries in Asia to assess the size and rates of return of those funds in relation to Sri Lanka’s EPF.
On size, Sri Lanka’s pension fund amounted to USD 13 billion in 2019. Exhibit 1 provides data on nine pension funds in Asia that are larger than Sri Lanka’s EPF.
On rate of return, because these funds are in different currencies, the returns on these funds were compared by standardising them to USD equivalent return for a five year period (2015 – 2019). Sri Lanka’s EPF had a compound average return rate of 3.6% during the period. Exhibit 1 provides data on rates of return as well, showing two funds in Asia that have larger returns than Sri Lanka’s EPF. These were the National Social Security Fund in China and Employees Provident Fund in India, which had return rates of 5.1% and 5.7% respectively.
Sri Lanka’s EPF is neither the largest pension fund in Asia nor the fund with the highest USD equivalent return rate. Therefore, we classify the minister’s statement as FALSE.
*FactCheck’s verdict is based on the most recent information that is publicly accessible. As with every fact check, if new information becomes available, FactCheck will revisit the assessment.
Sources
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