Govt. dismisses EPF, ETF merger claims, says review aims to improve administration

Wednesday, 22 July 2026 06:51 - - {{hitsCtrl.values.hits}}

Minister Dr. Anil Jayantha says social media claims about Govt. decisions on EPF and ETF are false
Insists there is no decision to merge the EPF and ETF or hand their administration to the private sector
Notes Cabinet paper seeks only to improve administrative efficiency through a committee of officials
Says review will focus on integrating data systems, improving governance, enhancing benefits for members
Admits fragmented databases have delayed payments and left billions of rupees in unidentified accounts

Labour Minister and Finance and Planning Deputy Minister Dr. Anil Jayantha Fernando

Labour Minister and Finance and Planning Deputy Minister Dr. Anil Jayantha Fernando yesterday dismissed as “completely false and misleading” reports circulating on social media that the Government has taken decisions regarding the Employees’ Provident Fund (EPF) and the Employees’ Trust Fund (ETF).

Issuing a statement, the Minister assured workers that the EPF and ETF funds accumulated through employees’ contributions remain secure and are not being misused or diverted.

He acknowledged that the two funds had been the subject of various allegations involving investment irregularities and financial fraud in the past, but said the current Government is committed to safeguarding contributors’ savings while improving the returns and benefits available to members.

Dr. Fernando clarified that the recently submitted Cabinet paper on the administration of the EPF and ETF was intended solely to enhance administrative efficiency and does not propose any changes to the ownership or management of the funds.

He noted that the EPF is currently administered by the Department of Labour, while the fund itself is managed by the Central Bank of Sri Lanka. The ETF, meanwhile, operates under a separate institutional framework.

Given the duplication of administrative functions across multiple institutions, the Government has proposed appointing a committee of officials to examine options for improving administrative efficiency, he said.

According to the Minister, the committee’s mandate is limited to making recommendations on streamlining administration, integrating data systems through technology, strengthening the safe and efficient investment of the funds and enhancing benefits for employees.

He said the current fragmented database systems have resulted in delays in processing claims, with even minor discrepancies in employees’ names causing payment delays. In addition, billions of rupees remain in unidentified accounts because data across institutions is not fully integrated.

Dr. Jayantha said a unified data system would help minimise these issues and improve the overall efficiency of fund administration.

He stressed that the Government has not taken any decision to merge the EPF and ETF or transfer their administration to the private sector, adding that the committee has not been given any mandate to recommend such measures.

Once the committee completes its work, its report will be made public and presented to employees and the National Labour Consultative Council for transparent discussions before any further action is considered, he said.

The Minister reiterated that the Government’s objective is to strengthen the administration, security and benefits of the two funds and urged the public not to be misled by false information circulating on social media.