Friday July 24, 2026 3:00 pm ECONOMYNEXT — Sri Lanka is advancing plans to restructure the governance of its superannuation funds by studying international models to introduce a tripartite management structure, though officials emphasized that the Employees’ Provident Fund (EPF)…
Friday July 24, 2026 3:00 pm
ECONOMYNEXT — Sri Lanka is advancing plans to restructure the governance of its superannuation funds by studying international models to introduce a tripartite management structure, though officials emphasized that the Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF) will remain distinct financial entities. Addressing Parliament regarding the proposed reforms, Deputy Minister of Labour Mahinda Jayasinghe stressed that any administrative integration will not merge the core financial pools of the two social security mechanisms. “However, even if managed as a single entity under a tripartite governance structure—and this must be understood clearly—EPF and ETF will remain as two separate funds,” Jayasinghe said. The government has appointed a committee comprising officials from the Labour Ministry, the Treasury, the Central Bank, and the ETF Board to evaluate the reforms. The panel has been tasked with delivering a report within three months, detailing recommendations for structural adjustments and exploring a potential administrative merger to streamline operations while keeping fund assets separate. The Deputy Minister explained that incorporating worker and employer representatives into fund governance is necessary to fulfill Sri Lanka’s international commitments on social security management. He noted that established global guidelines require direct input from all primary stakeholders rather than leaving fund management solely to state administrators. “In accordance with Convention C144 (Convention 144) ratified by Sri Lanka, it is essential to obtain government, employer, and employee participation in managing such social security funds,” Jayasinghe said. To design the framework, authorities are studying governance structures across India, Malaysia, South Korea, Singapore, Maldives, Germany, Kenya, and OECD countries. Alongside structural reforms, the Labour Department is upgrading its technological infrastructure, including a “Labour Community Platform” to integrate data systems between the Labour Department and the Central Bank. The single service window model seeks to enhance cost-effectiveness, boost transparency based on ISSA standards, and improve member benefits such as housing loans and medical assistance. “After the committee’s recommendations arrive… we will direct this to our tripartite body, the NLAC, which includes trade unions, employers, and our representatives,” Jayasinghe said, responding to public and opposition inquiries regarding the committee’s work. Reassuring fund members on the ultimate objective of the legislative initiative, Jayasinghe added that the proposed structure is not intended to repeat past damages to the funds, emphasizing that the committee was appointed specifically to gather proposals aimed at protecting them. (Colombo/Jul24/2026)
