Sri Lanka's Cabinet has authorized the drafting of legislative amendments to the Employees' Provident Fund Act of 1958, seeking to modernize social security protections for private and semi-government sector workers.
The Cabinet of Ministers has approved a proposal from the Labour Minister to initiate amendments to the Employees' Provident Fund (EPF) Act No. 15 of 1958. The decision follows consultation with the Central Bank and aims to strengthen the social security framework for private and semi-government sector employees who lack access to pension schemes.
The EPF, established decades ago to provide retirement and social security protection, currently operates under the Commissioner General of Labour, with the Central Bank's Monetary Board serving as fund custodian. While the legislation has undergone periodic updates since its inception, government authorities determined that comprehensive reforms are now necessary to address contemporary challenges.
The Labour Department has completed a preliminary draft incorporating recommendations submitted by the Central Bank. Based on this draft, the Cabinet has instructed the Legal Draftsman's office to prepare a formal Bill containing the proposed amendments. Officials stated that the reforms aim to enhance service delivery to EPF members and resolve difficulties they face given ongoing shifts in social, economic, and technological conditions.
The legislative process now moves to the drafting stage, with the Bill expected to address efficiency improvements and better align the century-old statute with present-day requirements. No specific provisions of the proposed amendments have yet been disclosed.
