The government has launched the first comprehensive review of the Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF) since the two schemes were established decades ago, Deputy Minister of Labour Mahinda Jayasinghe told Parliament on Thursday.
Jayasinghe said Sri Lanka is studying international governance models with a view to introducing a tripartite management structure for its superannuation funds, but stressed that the reforms would not merge the two funds’ assets. “Even if managed as a single entity under a tripartite governance structure — and this must be understood clearly — EPF and ETF will remain as two separate funds,” he said.
A committee comprising officials from the Labour Ministry, the Treasury, the Central Bank and the ETF Board has been appointed to evaluate the changes and deliver recommendations within three months. According to EconomyNext, the panel will also examine a possible administrative merger to streamline operations while keeping the funds’ financial pools distinct.
The Deputy Minister said bringing worker and employer representatives into fund governance is necessary to meet Sri Lanka’s international obligations. Under International Labour Organization Convention 144, which the country has ratified, the government, employers and employees must all take part in managing such social security funds, he said.
To design the new framework, authorities are examining governance arrangements in India, Malaysia, South Korea, Singapore, the Maldives, Germany, Kenya and OECD countries.
Jayasinghe added that the Labour Department is upgrading its technology infrastructure, including a “Labour Community Platform” to integrate data systems between the department and the Central Bank. The single-window model is intended to cut costs and improve transparency in line with international social security standards.
