EPF and ETF funds may come under one unified control structure as Cabinet appoints a committee to study legal and financial safeguards.
EPF and ETF funds may be brought under a single unified control structure after Cabinet approved the appointment of a special committee of senior officials to study the proposal.
Health and Media Minister, and Cabinet Media Spokesperson, Dr. Nalinda Jayatissa said Cabinet had agreed to the proposal submitted by the Minister of Labour to examine the feasibility of placing all functions of both the Employees’ Provident Fund and the Employees’ Trust Fund under one administrative framework.
The proposed unified structure is expected to operate through a tripartite board representing the Government, employees and employers. The main responsibility of the newly appointed officials’ committee will be to study and report on whether such a framework can be designed to provide maximum financial and legal protection to the assets of the general public who are members of these funds.
The committee is also expected to consider internationally recognised best practices when assessing how the new structure could be introduced and managed.
The Employees’ Provident Fund currently holds assets exceeding Rs. 4.9 trillion and covers the rights of more than 2.5 million workers in Sri Lanka. Under the present system, custodianship, financial administration, investment management and the payment of benefits to members are handled by the Central Bank of Sri Lanka.
Meanwhile, administrative duties such as registering employers and employees, collecting arrears, enforcing relevant laws and regulations, and protecting employee rights under the Act are carried out by the Department of Labour.
The Employees’ Trust Fund, established under the Employees’ Trust Fund Act No. 46 of 1980, is already governed by a tripartite board representing employer and employee parties. The fund currently has more than 3 million active members and holds assets exceeding Rs. 637.5 billion.
The adoption of a tripartite control mechanism for managing social security funds is also recognised globally as a key principle and is promoted by the International Labour Organization.
