Both EPF and ETF under unified management

Cabinet approval has been granted to appoint a special committee comprising senior officials to explore the feasibility of bringing all functions of both the Employees' Provident Fund (EPF) and the Employees' Trust Fund (ETF) under a single, integrated governance structure. Health and Mass Media Minister and Cabinet Spokesperson Dr. Nalinda Jayatissa revealed that the Cabinet had agreed to this proposal, which was submitted by the Minister of Labour.

It is expected that this integrated governance framework will be implemented through a tripartite board with representation from all three parties: the government, employees, and employers. The main task assigned to the newly appointed committee of officials is to investigate and report on the possibility of establishing this new administrative structure in a manner that ensures maximum financial and legal protection for the assets of the general public who are members of these funds, in accordance with internationally recognized best practices.

Currently, the assets of the Employees' Provident Fund exceed 4.9 trillion rupees, covering the rights of over 2.5 million employees in the country. Under the existing system, the Central Bank of Sri Lanka is responsible for the trusteeship, financial administration, investment management, and payment of benefits to members of this fund. The Department of Labour carries out the administrative responsibilities of registering employers and employees, collecting arrears, enforcing relevant laws and regulations, and safeguarding employee rights in accordance with the Act.

On the other hand, the Employees' Trust Fund, established under the Employees' Trust Fund Act No. 46 of 1980, is already governed by a tripartite board representing employer and employee parties. This fund currently has over 3 million active members, and its asset value exceeds 637.5 billion rupees. Adopting a tripartite governance mechanism for managing such social security funds is a fundamental principle promoted even by the International Labour Organization (ILO) and recognized worldwide.