ECONOMYNEXT — Sri Lanka is advancing plans to restructure the governance of its superannuation funds by learning worldwide fashions to introduce a tripartite administration construction, although officers emphasised that the Staff’ Provident Fund (EPF) and Staff’ Belief Fund (ETF) will stay distinct monetary entities.
Addressing Parliament concerning the proposed reforms, Deputy Minister of Labour Mahinda Jayasinghe harassed that any administrative integration won’t merge the core monetary swimming pools of the 2 social safety mechanisms.
“Nevertheless, even when managed as a single entity beneath a tripartite governance construction—and this should be understood clearly—EPF and ETF will stay as two separate funds,” Jayasinghe mentioned.
The federal government has appointed a committee comprising officers from the Labour Ministry, the Treasury, the Central Financial institution, and the ETF Board to judge the reforms. The panel has been tasked with delivering a report inside three months, detailing suggestions for structural changes and exploring a possible administrative merger to streamline operations whereas protecting fund belongings separate.
The Deputy Minister defined that incorporating employee and employer representatives into fund governance is critical to meet Sri Lanka’s worldwide commitments on social safety administration. He famous that established international tips require direct enter from all main stakeholders relatively than leaving fund administration solely to state directors.
“In accordance with Conference C144 (Conference 144) ratified by Sri Lanka, it’s important to acquire authorities, employer, and worker participation in managing such social safety funds,” Jayasinghe mentioned.
To design the framework, authorities are learning governance buildings throughout India, Malaysia, South Korea, Singapore, Maldives, Germany, Kenya, and OECD international locations.
Alongside structural reforms, the Labour Division is upgrading its technological infrastructure, together with a “Labour Neighborhood Platform” to combine information programs between the Labour Division and the Central Financial institution. The only service window mannequin seeks to reinforce cost-effectiveness, enhance transparency primarily based on ISSA requirements, and enhance member advantages similar to housing loans and medical help.
“After the committee’s suggestions arrive… we’ll direct this to our tripartite physique, the NLAC, which incorporates commerce unions, employers, and our representatives,” Jayasinghe mentioned, responding to public and opposition inquiries concerning the committee’s work.
Reassuring fund members on the last word goal of the legislative initiative, Jayasinghe added that the proposed construction will not be supposed to repeat previous damages to the funds, emphasizing that the committee was appointed particularly to collect proposals geared toward defending them. (Colombo/Jul24/2026)
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