📈 EPF Transparency Lags Behind CSE-Listed Firms and Banks, Reports Verité Research

A new research brief by Verité Research highlights critical transparency gaps in Sri Lanka's largest financial institution, the Employees' Provident Fund (EPF), compared to other regulated entities managing public savings. • The Core Issue: The Central Bank of Sri Lanka (CBSL), as manager of the EPF, applies lower transparency and disclosure standards to the fund than those required for companies listed on the Colombo Stock Exchange (CSE), licensed commercial banks, and unit trusts. The EPF discloses less information, in less detail, less frequently, and with less timeliness. • Global Standards: The fund falls short of international benchmarks for public disclosure, specifically missing standards set by the OECD’s International Organisation of Pension Supervisors (IOPS) principles and the Global Pension Transparency Benchmark (GPTB). • Member Risks: Because private sector workers are legally mandated to contribute to the EPF, lack management input, and cannot withdraw funds at will, high transparency is the sole safeguard for their retirement welfare. This is critical given the fund's past exposure to financial malpractice exposed in 2019 forensic audits. • Proposed Reforms: Verité Research identifies three short-to-medium-term actions: ensuring full compliance with the EPF Act, adopting international best practices, and enacting the 2024 private member’s Bill on EPF disclosure. Long-term goals require robust independent regulation to protect member interests.