The Employers’ Federation of Ceylon (EFC) has submitted a set of proposals aimed at improving the governance of the Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF), two of the country’s largest social security institutions.
The recommendations were presented to the Minister of Labour, Mr. Anil Jayantha Fernando, through a position paper titled “Preserving Beneficiary Interests in Sri Lanka’s Social Security Institutions Through Good Governance.”
The proposals come at a time when policymakers, employers, and workers are paying closer attention to how retirement and social security funds are managed, invested, and governed.
Focus on Governance and Accountability
The position paper was developed through a collaborative initiative led by the EFC with the support of the ILO Bureau for Employers’ Activities (ACTEMP) and the International Training Centre of the ILO (ITC-ILO).
The initiative also brought together employers and other stakeholders through the newly established EFC Employers’ Network on Social Security.
According to the EFC, the objective was to encourage dialogue on governance reforms related to the EPF and ETF while examining international practices that could improve local systems.
The paper highlights the need for greater transparency, accountability, and balanced representation in the governance of social security institutions.
It also reviews governance structures, board composition, investment management practices, and the use of digital technology to improve administration and service delivery.
Key Proposals for EPF and ETF
Among the main recommendations are legislative changes to ensure effective representation of employers and workers on the governing boards of the EPF and ETF.
The EFC has also proposed qualification requirements for board members to improve decision-making and oversight.
Another recommendation is the establishment of an independent investment committee for the ETF to strengthen investment governance and accountability.
The paper further recommends introducing unique identification numbers for members. The proposal aims to improve transparency, record management, and access to services.
Why It Matters
The EPF and ETF hold retirement savings belonging to millions of employees. Governance standards within these institutions can directly affect fund management, investment decisions, and public confidence.
For employers and employees, stronger governance frameworks could help improve accountability while ensuring that decisions are made in the interests of beneficiaries.
What Happens Next?
The proposals have now been submitted to the Minister of Labour for consideration.
Any changes to board structures, representation requirements or governance frameworks would require policy discussions and, in some cases, legislative amendments.
The EFC said the initiative reflects the commitment of employers to contribute to discussions on building transparent and sustainable social security institutions while protecting beneficiary interests.
Last modified: June 21, 2026
