Thursday Jun 18, 2026
Thursday Jun 18, 2026
Wednesday, 17 June 2026 07:05 - - {{hitsCtrl.values.hits}}
Cabinet Spokesman and Minister Dr. Nalinda Jayatissa
The Government has taken the first formal step toward examining the possibility of bringing Sri Lanka’s two largest worker savings funds, the Employees’ Provident Fund (EPF) and the Employees’ Trust Fund (ETF) under a single governance framework, with the Cabinet of Ministers approving the appointment of a Senior Officials Committee to study the proposal and provide recommendations.
Cabinet Spokesman and Minister Dr. Nalinda Jayatissa announced the decision at the weekly post-Cabinet media briefing yesterday, stating that the committee will assess the feasibility of integrating the operations of the EPF and ETF under a governance structure managed by a tripartite board representing the Government, employers and employees.
The move is a potential shift in the administration of Sri Lanka’s social security funds, which collectively manage assets exceeding Rs. 5.5 trillion and cover more than 3 million workers.
Accordingly, the initiative is aimed at aligning the country’s social security governance with internationally recognised best practices, whilst ensuring stronger legal and financial safeguards for members’ assets.
The EPF, established under the Employees’ Provident Fund Act No. 15 of 1958, is the country’s largest retirement savings fund with over 2.5 million members and assets exceeding Rs. 4.9 trillion. Its investment management, financial administration and benefit payments are currently handled by the Central Bank of Sri Lanka (CBSL), while the Labour Department is responsible for employer and employee registration, compliance enforcement, recovery of arrears and legal protection of employees’ rights.
In contrast, the ETF, established under the Employees’ Trust Fund Act No. 46 of 1980, is administered by a tripartite board comprising representatives of employers and employees. The fund has over 3 million active members and an asset base exceeding Rs. 637.5 billion.
The move appears to draw on the ETF’s governance model, with officials highlighting that tripartite management of social security institutions is a principle widely promoted by the International Labour Organisation (ILO) and regarded as an international best practice.
Dr. Jayatissa stressed that the Cabinet approval does not amount to an immediate restructuring of either fund, noting that the decision paves the way for a detailed assessment of the legal, institutional and operational implications of a unified governance framework.
“The recommendations of the Senior Officials Committee are expected to determine whether legislative and administrative reforms will be required to implement such a model,” he added.
The proposal to this effect was submitted by the Labour Minister Dr. Anil Jayantha Fernando.
