Committee formed to study EPF–ETF merger

The Cabinet has approved the appointment of a senior officials’ committee to examine the feasibility of bringing all functions of the Employees’ Provident Fund (EPF) and the Employees’ Trust Fund (ETF) under a unified governance framework.

The proposal aims to assess whether the operations of the two major social security funds can be managed under an integrated administrative structure.

The EPF, established under the Employees’ Provident Fund Act No. 15 of 1958, currently covers more than 2.5 million members, with total assets exceeding Rs. 4.9 trillion.

The Central Bank of Sri Lanka is responsible for its custody, investment management, financial administration, and payment of member benefits, while the Department of Labour handles employer and employee registration, compliance enforcement, recovery of dues, and legal protection of employee rights under the Act.

The Employees’ Trust Fund (ETF), established under Act No. 46 of 1980, is governed by a tripartite board representing employers and employees. It currently covers over 3 million active members and manages assets exceeding Rs. 637.5 billion.

Tripartite governance in social security systems is widely recognised as international best practice and is promoted by the International Labour Organisation (ILO).

Accordingly, the Cabinet has approved a proposal by the Labour Minister to appoint a senior officials’ committee to study and recommend the feasibility of placing all functions of both EPF and ETF under a unified tripartite governance structure representing the government, employers, and employees, while ensuring full legal and financial protection of member assets in line with international best practices.