The Employers’ Federation of Ceylon (EFC) has handed Labour Minister Anil Jayantha Fernando a detailed position paper on strengthening governance in Sri Lanka’s social security institutions, in the most substantive private-sector submission yet on the reform of the Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF).
The paper — titled “Preserving Beneficiary Interests in Sri Lanka’s Social Security Institutions Through Good Governance” — is the output of a collaboration led by the EFC with the ILO Bureau for Employers’ Activities (ACTEMP) and the International Training Centre of the ILO (ITC-ILO). It was developed through the newly established EFC Employers’ Network on Social Security, which brings together employers and stakeholders for sustained dialogue on the governance of the two funds.
The submission focuses on transparency, accountability and balanced representation, drawing on international good practice to examine board composition, investment management frameworks and the role of digital technology in administering social security schemes. Its headline recommendations include:
- Legislative reforms to ensure effective representation of employers and workers on the EPF and ETF governing boards;
- Qualification requirements for board members;
- An independent investment committee for the ETF;
- Unique identification numbers for fund members to improve transparency and service delivery;
- Adoption of digital technologies across fund administration.
The paper lands four days after the Cabinet approved a Senior Officials Committee to study the feasibility of merging the EPF and ETF under a unified tripartite governance framework, giving the employer side an early opportunity to set the substantive agenda. Together, the two funds cover more than 5.5 million members and oversee assets in excess of Rs. 5.5 trillion — the largest pool of long-term savings in the country and a major holder of Sri Lankan government securities and Colombo Stock Exchange equities.
Governance concerns over the EPF have intensified since the Central Bank’s restructuring of domestic debt, with civil-society researchers earlier flagging disclosure gaps in the fund’s public reporting. The EFC paper signals that organised employers want statutory reform — not just administrative changes — as the price of supporting any wider integration plan.
The Labour Minister has not yet publicly responded to the recommendations. The EFC said its network will continue to share international experience and push evidence-based dialogue with the government on safeguarding beneficiary interests.
Source: Ada Derana.
