Cabinet Approves Feasibility Study to Unify EPF and ETF Governance Framework 💼

The Sri Lankan Government has approved a proposal by Labour Minister Dr. Anil Jayantha Fernando to appoint a Senior Officials Committee. This committee will evaluate the feasibility of bringing the country's two largest social security funds under a unified governance structure. • Overall Assets & Coverage: The move impacts social security funds that collectively manage assets exceeding Rs. 5.5 Trillion and cover over 3 million workers. The initiative aims to align operations with international best practices and strengthen legal and financial safeguards for members' assets. • EPF Overview: Established in 1958, the Employees’ Provident Fund (EPF) is the largest retirement savings fund with over 2.5 million members and assets exceeding Rs. 4.9 Trillion. The Central Bank of Sri Lanka (CBSL) currently manages its investments, while the Labour Department handles compliance and registrations. • ETF Overview: Established in 1980, the Employees’ Trust Fund (ETF) has over 3 million active members and an asset base exceeding Rs. 637.5 Billion. It is already administered by a tripartite board representing government, employers, and employees. • Proposed Model & Alignment: The proposed framework seeks to adopt a tripartite management model for both funds—a principle promoted by the International Labour Organisation (ILO). Cabinet Spokesman Dr. Nalinda Jayatissa clarified that this approval is strictly for a detailed assessment of legal, institutional, and operational implications, rather than an immediate restructuring of either fund.