The cabinet has greenlit a proposal to amend the Employees' Provident Fund Act, directing the Legal Draftsman to prepare legislation based on central bank recommendations to modernize the system covering over 2.5 million workers.
Sri Lanka's cabinet of ministers has approved a proposal to amend the Employees' Provident Fund Act, instructing the Legal Draftsman to prepare a legislative bill based on recommendations from the Central Bank. Labour Minister Nalinda Jayatissa stated that while certain provisions have been modified over time, further amendments are necessary to enhance service quality and efficiency while addressing challenges faced by members in light of contemporary social, economic, and technological developments.
The Employees' Provident Fund, established under Act No. 15 of 1958, functions as a mandatory savings scheme for private and semi-public sector workers ineligible for pensions. The fund currently serves over 2.5 million members and manages assets exceeding 4.9 trillion rupees. General administrative responsibilities fall under the Commissioner General of Labour, while the Monetary Board of the Central Bank acts as the fund's trustee.
The proposed amendments follow concerns raised by observers regarding potential conflicts of interest arising from the Central Bank simultaneously managing regulatory functions and operational fiscal activities related to the fund. The Department of Labour has completed a preliminary draft to inform the legislative process.
