‘Shrama Vasana Fund’ to be liquidated by June

Monday, 23 February 2026 01:20 - - {{hitsCtrl.values.hits}}

Fund set up in 1998 provides financial assistance, welfare to private and semi-Govt. sector employees

The Cabinet of Ministers has approved a proposal to liquidate the ‘Shrama Vasana Fund’ with effect from 30 June, in line with recommendations aimed at rationalising State-owned non-commercial institutions.

Accordingly, the Cabinet last week approved the resolution presented by Labour Minister Dr. Anil Jayantha Fernando to proceed with liquidation under the provisions of the Finance Act, No. 38 of 1971. The Labour Ministry will continue to oversee and deliver essential services previously provided by the Fund, including those not currently covered by any other institution.

In preparation for the transition, an action plan has been formulated after consultations with a stakeholder committee to determine which functions should continue and the appropriate mechanisms for their implementation. The move is expected to streamline institutional structures while ensuring that welfare support for private and semi-Government employees remains uninterrupted.

Established under the Shrama Vasana Fund Act, No. 12 of 1998, the Fund was created to provide financial assistance and related welfare support to private and semi-Government sector employees. It currently operates under the purview of the Labour Ministry.

The decision follows recommendations by the Review Committee on Government-owned non-commercial institutions, which identified the Fund as an entity where direct State mediation should be removed and the institution liquidated, without causing prejudice to beneficiaries currently receiving services.