The Government has decided to appoint a Senior Officials’ Committee to assess the feasibility of integrating the Employees’ Provident Fund (EPF) and the Employees’ Trust Fund (ETF) under a single governance framework overseen by a tripartite board representing the Government, employers, and employees.
Cabinet Spokesman and Minister Dr. Nalinda Jayatissa announced the decision during the weekly Cabinet media briefing on Tuesday (16), stating that the existing separate administrative and regulatory structures have resulted in overlapping functions and a fragmented policy approach.
At present, the Central Bank of Sri Lanka manages the EPF’s asset base of approximately Rs. 4.9 trillion on behalf of 2.5 million members, while the Labour Department is responsible for enforcing employer compliance and protecting employee rights under the EPF Act.
Dr. Jayatissa noted that the Central Bank’s role in managing the EPF was established as a historical arrangement during a period when alternative institutional mechanisms were unavailable.
He said the proposed reform seeks to align Sri Lanka’s social security system with international best practices recommended by the International Labour Organization (ILO). Unlike the EPF’s dual-agency structure, the ETF is already managed by a tripartite board comprising representatives of the Government, employers, and employees, overseeing assets worth more than Rs. 637.5 billion for over three million members.
The Minister stated that the newly appointed committee will examine the operational and legal feasibility of bringing both funds under a unified governance structure aimed at improving efficiency, streamlining administration, and maximizing benefits for members.
According to Dr. Jayatissa, the proposed model would place greater ownership and oversight of the funds in the hands of employees through the tripartite board.
“Once governance is transferred to a tripartite board representing the Government, employers and employees, no future Government will be able to utilize these funds at its discretion,” he said.
