Wednesday Aug 05, 2026
Wednesday Aug 05, 2026
Wednesday, 5 August 2026 07:38 - - {{hitsCtrl.values.hits}}
Cabinet Spokesman and Minister Dr. Nalinda Jayatissa
The Cabinet of Ministers on Monday approved the drafting of legislation to amend the Employees’ Provident Fund (EPF) Act, paving the way for reforms aimed at modernising the administration of Sri Lanka’s largest retirement savings scheme and strengthening safeguards for its members.
Addressing the media, Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said yesterday that the Legal Draftsman has been instructed to prepare a Bill based on recommendations submitted by the Central Bank.
Cabinet clears...
He said that while the Employees’ Provident Fund Act No. 15 of 1958 has been amended on several occasions since its enactment, further reforms are necessary to improve service delivery and address challenges arising from changing social, economic and technological conditions.
“The Act should be amended further to provide a quality and efficient service, while minimising the difficulties faced by members in line with current social, economic and technological changes,” Dr. Jayatissa told the weekly post-Cabinet media briefing.
The EPF was established in 1958 as a compulsory savings scheme to provide social security for private and semi-public sector employees who are not entitled to pension benefits. At present, it serves over 2.5 million members and manages assets exceeding Rs. 4.9 trillion.
Under the existing framework, the Department of Labour is responsible for the general administration of the Act, while the Monetary Board of the Central Bank acts as trustee of the Fund.
Dr. Jayatissa said the Department of Labour has already prepared a preliminary draft of the proposed amendments.
He explained that one of the key objectives is to reduce the financial hardship faced by employees when employers delay EPF contributions and disputes become tied up in lengthy court proceedings.
“Such delays can deprive members of the interest they would otherwise have earned on their savings. The proposed amendments are also expected to revise the surcharge imposed on employers that default on EPF contributions, with the aim of strengthening compliance and protecting employees’ retirement savings,” he added.
The planned reforms come amid broader efforts to improve the governance and efficiency of the EPF, which remains the country’s largest retirement savings fund.
Meanwhile, experts have previously highlighted concerns over the EPF’s institutional framework, noting that the Central Bank’s dual role as trustee of the Fund, while also exercising regulatory and operational responsibilities could create potential conflicts of interest.
However, when asked the Cabinet Spokesman did not indicate whether the proposed amendments would address this issue.
