How to Withdraw EPF for Housing Loan in Sri Lanka (2025)
December 25, 2025
How to Withdraw EPF for Housing Loan in Sri Lanka (2025)
Unlock your retirement fund early.
The Employees' Provident Fund (EPF) allows you to use your savings to secure a housing loan. You don't "withdraw" cash directly; you "pledge" it as security against a bank loan.
1. The 30% Rule
You can obtain a loan up to 30% of your total EPF balance.
- Example: If you have Rs. 3 Million in EPF, you can get a loan of approx Rs. 900,000 backed by EPF.
2. Eligibility
- Membership: Must be an active contributor for at least 10 years.
- Status: Currently employed (if unemployed, different rules apply).
- Purpose: Buying land, building a house, or clearing an existing housing mortgage.
3. The Process
- Obtain Balance: Get your certified EPF Balance Sheet (B-Card) from the Labour Department (Narahenpita or regional).
- Apply to Bank: Go to an approved bank (BOC, Peoples, HNB, etc.) with the EPF application.
- Bank Approval: The bank approves the loan subject to Labour Dept clearance.
- Labour Dept Approval: The bank sends documents to the Central Bank/Labour Dept to place a "lien" on your fund.
- Disbursement: Once approved, the bank releases money to you/seller.
4. Repayment vs Set-Off
- Repayment: You must pay monthly installments to the bank like a normal loan.
- Default: If you fail to pay, the bank can ask the EPF to release your money to settle the debt. (This hurts your retirement compound interest!).
Warning: The process is slow. Allow 2-3 months for the bureaucracy.
Use your assets wisely. EPF Office Locator