The Cabinet of Ministers has approved a proposal by the Minister of Labour to draft amendments to the Employees’ Provident Fund (EPF) Act No. 15 of 1958, aimed at strengthening social security for private and semi‑government sector employees who are not entitled to pensions.

The EPF Act, introduced in 1958, is administered under the Commissioner General of Labour, with the Monetary Board of the Central Bank of Sri Lanka serving as custodian of the Fund. 

While provisions of the Act have been revised periodically, the government notes that further reforms are necessary to address challenges faced by members in line with current social, economic, and technological changes.

Taking into account proposals submitted by the Central Bank, the Department of Labour has prepared a preliminary draft. Based on this, instructions have been issued to the Legal Draftsman to prepare a Bill to amend the EPF Act. (Newswire)

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The Cabinet of Ministers has approved the appointment of a Senior Officials Committee to study the feasibility of integrating the operations of the Employees’ Provident Fund (EPF) and the Employees’ Trust Fund (ETF) under a unified governance framework.

The EPF, established in 1958, covers more than 2.5 million members and holds assets exceeding Rs. 4.9 trillion. 

Its custodianship, investment management, financial administration, and benefit payments are overseen by the Central Bank of Sri Lanka, while the Department of Labour handles registration, compliance, arrears recovery, and legal protection of employee rights.

The ETF, created in 1980, is managed by a tripartite board representing employers and employees, and currently covers over 3 million active members with assets surpassing Rs. 637.5 billion. 

The tripartite governance model is recognized internationally as a best practice and is promoted by the International Labour Organization (ILO).

The Labour Minister’s proposal to establish the committee was endorsed by the Cabinet, with the initiative aimed at exploring how both funds could be brought under a single tripartite governance framework representing the Government, employers, and employees. (Newswire)

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The Court of Appeal has delivered a ruling in favour of the Central Bank of Sri Lanka (CBSL), overturning a directive by the Right to Information (RTI) Commission that sought the disclosure of detailed transaction-level data on Employees’ Provident Fund (EPF) investments. 

According to a CBSL statement, the case arose from an RTI request submitted by Verité Research (Pvt) Ltd seeking information on EPF investments, including detailed information on government securities transactions such as purchase dates, yields, prices, and counterparties. 

While the Central Bank released certain general information, it refused to disclose transaction-level information on the basis that such information is commercially sensitive and falls within the statutory exemptions provided under Section 5(1) of the Right to Information Act No. 12 of 2016 (RTI Act). 

The Court of Appeal overruled the decision of the RTI Commission, holding that the requested information falls within the exemption under Section 5(1)(d) of the RTI Act, which protects commercially confidential information where disclosure would harm a third party. 

The Court observed that releasing EPF transaction details could expose the Fund’s investment strategies, enabling market participants to anticipate and outmanoeuvre its bids in government securities auctions. The Court noted that this would place the EPF at a competitive disadvantage and potentially reduce returns, ultimately affecting millions of contributors to the Fund. 

Emphasising the Central Bank’s fiduciary duty to safeguard EPF assets, the Court held that disclosure of such sensitive financial information would undermine the Fund’s position in the market. 

It further noted that transparency in EPF operations is already ensured through statutory mechanisms, including annual reporting, audits by the Auditor General, and parliamentary oversight. 

On the question of public interest, the Court concluded that the respondent had failed to demonstrate that the benefits of disclosure would outweigh the potential harm to the EPF and its members. 

Accordingly, the Court held that the RTI Commission had exceeded its powers by ordering disclosure in circumstances where a valid statutory exemption applied. Accordingly, the Commission’s order dated 27th November 2018 was set aside, and the appeal was allowed. 

The CBSL states that the judgment affirms that while the RTI Act promotes transparency, commercially sensitive financial information held by public authorities may be lawfully withheld where disclosure would harm competitive interests and no overriding public interest is established. (Newswire)

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A 32‑year‑old resident of Medawachchiya has been arrested by the Criminal Investigation Department (CID) for allegedly assisting in a scheme to fraudulently withdraw money from the Employees’ Provident Fund (EPF).

The suspect, taken into custody yesterday (18), is accused of aiding and abetting the crime by conspiring with others who had submitted forged documents claiming entitlement to permanent government pension appointments.

Earlier, six men and two women were arrested in connection with the same case and remanded after being produced before the court. The latest arrest involves the husband of one of the previously detained female suspects.

The CID said the suspect will be produced before the Medawachchiya Magistrate’s Court. Investigations into the fraudulent withdrawals are continuing. (Newswire)

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President Anura Kumara Dissanayake said that Rs. 11,000 million is required to settle the outstanding arrears of statutory allowances, such as the Employees’ Provident Fund (EPF), Employees’ Trust Fund (ETF), Gratuity allowances and taxes of 10 state institutions. 

The institutions are: 

1. Lanka Sugar Company (Private) Limited
2. Janatha Estates Development Board
3. Sri Lanka State Plantations Corporation
4. Sri Lanka Rupavahini Corportaion
5. Ceylon Fisheries Corporation
6. National Livestock Development Board
7. Elkaduwa Plantations Limited
8. Sri Lanka Broadcasting Corporation
9. North Sea Limited
10. Ceylon Ceramics Corporation

It has been proposed to pay these unpaid statutory payments in phases and to allocate Rs. 5000 million for the year 2026. (Newswire)

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The National Labour Advisory Council reconvened on Thursday (30) at the Labour Secretary’s Office in Narahenpita, during which a discussion was held on proposing amendments to the Employees’ Provident Fund (EPF) Act.

The meeting was attended by representatives from the Lanka Employers’ Federation and various trade unions.

During the discussion, key suggestions were made regarding the amendments to the Employees’ Provident Fund Act, including:

• Updating the surcharge mechanism to make it more beneficial for EPF members
• Introducing direct loans to members from the EPF itself, rather than through banks
• Addressing and discussing gender-based disparities in provisions within the EPF Act

Commenting on the meeting, Deputy Minister of Labour Mahinda Jayasinghe said this marks the sixth meeting of the Council since the current government came into power, following several years of inactivity under previous administrations.

The discussion was attended by Minister of Labour Anil Jayantha Fernando, Ministry Secretary S.M. Piyatissa, Labour Commissioner General Nadeeka Wataliyadda, and several other officials. (Newswire)

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The Labour Department has launched a special mobile service program from September 22 to 26 to address issues related to the Employees’ Provident Fund (EPF).

Services will be available at Labour Department district and sub-offices across the country and will include:

• EPF balance and account inquiries
• Correction of membership details based on NIC
• Member registration
• Acceptance of complaints
• Guidance on labour law

EPF members are advised to bring their B-card and, in cases of amendments to membership details, a letter from their employer. (Newswire)

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The Central Bank of Sri Lanka has announced that the statement of Member Accounts of the Employees’ Provident Fund (EPF) for the second half of 2024 has now been issued.

Issuing a notice, the Central Bank has urged employees to collect their updated statement from their employers, adding that the statements have already been posted to employers. 

Complaints about discrepancies regarding member names, National Identity Card numbers (NIC), and credited contribution amounts in these statements of accounts can be reported via the telephone number 0112-206690 or the email epfhelpdesk@cbsl.lk. (Newswire)

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The Department of Labour has announced that the services related to the Employees’ Provident Fund (EPF), which were temporarily suspended today, have recommenced. 

Issuing a statement, the Labour Department said that the services resumed from 12.00 noon today. 

Previously, the department announced a temporary suspension of services until 23 May due to urgent maintenance work carried out on the computer data system used for EPF services. (Newswire)

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The Department of Labour has announced a temporary suspension of services related to the Employees’ Provident Fund (EPF) from today (May 21) until May 23.

Issuing a statement, the department said the decision was made due to urgent maintenance work being carried out on the computer data system used for EPF services.

Accordingly, EPF-related services provided by the Department of Labour will be unavailable during this period. (Newswire)

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Deputy Minister of Labour Mahinda Jayasinghe says nearly 22,450 companies have failed to contribute to the Employees Provident Fund (EPF).

The Deputy Minister made the remarks during the event to mark the newly appointed Commissioner General of Labour, H.M.D.N.K. Wataliyadda assuming duties today. 

Mahinda Jayasinghe further disclosed that the unpaid EPF contributions amount to nearly Rs. 36 billion.

Stating that the Ministry of Labour will provide its utmost support for the Labour Department to recover the funds, he expressed confidence that the newly appointed Commissioner General of Labour will fulfil her duties in this regard.

Deputy Minister Mahinda Jayasingeh also said that steps are being taken to amend the Labour Laws to improve the welfare of workers. (Newswire)

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The Employees’ Provident Fund (EPF) has informed its members that it has submitted an offer to exchange the portfolio of Treasury Bonds of the EPF under the Domestic Debt Optimization (DDO) programme.

Issuing a statement, the Central Bank of Sri Lanka said that the EPF Fund has made the offer as an eligible participant and with the approval of the bank’s Monetary Board.

The CBSL added that the EPF Fund has also offered to do so based on the invitation made by the Ministry of Finance following a Resolution adopted by Parliament. 

CBSL full statement : https://shorturl.at/AEM04 (NewsWire)

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President Ranil Wickremesinghe has hinted at surprises in the 2024 budget, which could include a proposal to tax primary bond dealers.

Speaking in Parliament yesterday (Sep 06), the President said primary bondholders will be taxed as per next year’s budget.

He made the remark in response to concerns raised on the government’s move to charge a 30 per cent tax if Employees’ Provident Fund (EPF) holders do not opt to participate in the debt optimization process.

Responding to Opposition Leader MP Sajith Premadasa, the President pointed out that the proposal to charge a 30 per cent tax from the EPF was initially proposed by the Sri Lanka Podujana Peramuna (SLPP).

“This proposal was originally made even before I was appointed Prime Minister,” President Wickremesinghe said. 

Commenting on domestic debt optimization, the President said the Supreme Court had clearly stated that there is no issue with the Inland Revenue Amendment Bill.

The President made the remark in response to Opposition MP Dr. Harsha de Silva’s request for a debate on the Inland Revenue Amendment Bill which consists the provisions for charging a 30 per cent tax from the EPF.

Reading the Supreme Court determination on debt optimization, the President said, “The Supreme Court states there is no issue with the Inland Revenue Amendment Bill. The Supreme Court has clearly shown that the banks cannot participate in the domestic debt optimization process given their position. The banks cannot participate in the debt optimization process given the thin line of capital they hold. Petitioners who filed legal action against the Bill have also failed to provide evidence to prove their point.” (NewsWire)

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The Collective of Trade Unions and Civil Society Organisations has issued a clarification to a statement issued by the Central Bank of Sri Lanka (CBSL) claiming that the Collective had failed to attend a meeting to discuss the impact on the Employees’ Provident Fund (EPF), Employees’ Trust Fund (ETF), and other superannuation funds due to the Domestic Debt Restructuring (DDR) process. 

Issuing a statement, the Collective of Trade Unions and Civil Society Organisations responded to an earlier statement of the CBSL claiming that the representatives of The Collective failed to attend a meeting organized soon after a protest staged in Colombo on Monday (Aug. 28).

The CBSL said that they had called for a meeting accommodating five representatives of The Collective, which the latter had failed to attend. 

Responding to the claims, the Collective of Trade Unions and Civil Society Organisations said that it had refused a meeting with only five representatives and had negotiated a meeting with 20 of its representatives to which the CBSL had agreed.

The Collective added that agreeing to the meeting, the CBSL had informed that a comprehensive meeting with the participation of the Governor of the Central Bank, the Secretary to the President, and 20 representatives of The Collective would be arranged within two weeks, after which their protest had been called off. 

The full statement of the Collective of Trade Unions and Civil Society Organisations:

A collective of trade unions, along with a group of civil society activists, protested against the anti-working people policy of the Government and the CBSL to destroy EPF, ETF, and other superannuation funds in the name of Domestic Debt Restructuring (DDR) on August 28, Monday, at noon, in front of the Fort Railway Station. We demanded that,

1. EPF, ETF, and other superannuation funds should be excluded from DDR. Pension funds are working people’s only savings for use in old age. They are not investment funds related to assets and wealth used to amass profit. As savings on wages, our pension funds are nowhere near the investment assets of the private creditors demanding equal treatment. 
2. Slash the bonds owned by tax evaders equivalent to the present value of the evaded taxes. Take over their deposits. The Department of Inland Revenue has stated that the total value of evaded taxes is Rs. 904 billion. The current value of the evaded taxes exceeds Rs. 2 trillion as tax evasion had happened over a period that offered bondholders high interests. Slashing bonds worth Rs. 2 trillion allows savings over three times the amount the Government proposes to save by cutting EPF and ETF in the next 16 years. 
3. Do a forensic audit to repatriate US$ 53 billion in funds expatriated through transfer mispricing and trade-misinvoicing in international trade. The Global Financial Integrity revealed that over US$40 billion was lost to the country through transfer mispricing and trade-misinvoicing in international trade between 2009 and 2018. Wijedasa Rajapakshe, the Minister of Justice, stated that the value is US$53 billion. Therefore, we demand that CBSL launches a forensic audit to repatriate these funds to enhance the Government’s financial position.
4. Conduct a forensic audit of foreign and domestic loans and declare the Government debt as odious. The former Auditor General Gamini Wijesingha revealed that the value of the domestic assets remaining in the country is significantly low compared to the foreign project loans obtained by the government as of 2017. This indicates that foreign loans were largely embezzled to enrich a corrupt political establishment and business elites that maintain close ties with those in power. Both international law and US domestic law hold that the burden of proof lies with the creditors when there is widespread evidence of chronic misuse of external borrowings. Creditors should reclaim the funds from those accused of misusing or embezzling them, and not from those who suffered under their control. The recently published statement signed by 182 eminent economists and academics worldwide supports this position on debt cancellation in Sri Lanka.     
5. Remove tax holidays given to BOI firms. BOI firms are entirely exempted from import taxes and provided with windfall tax holidays on their income despite IMF’s demands that these tax holidays be removed. Eliminating tax holidays given to BOI firms will significantly increase the tax revenue of the Government, given that the tax ratio has declined from over 22% of GDP since the mid-1990s to around 9% currently.  

Over the past couple of months, many trade unions, including us, attempted to discuss the issue of pension funds related to domestic debt restructuring with the Central Bank. However, CBSL did not show any interest in engaging us. CBSL did not provide a meeting even during a protest organised by a broad coalition of trade unions on July 25. 

At first, CBSL attempted to complete the DDR process by misleading the public by couching the impending dangers on pension funds inside numbers and technical language. However, explanations we made on the dangerous impact of DDR on pension funds, mobilisation of the EPF members, and protests have made it impossible for the CBSL to continue their fraudulent tactic. 

Nevertheless, they tried to follow the same path on August 28 by obtaining a court injunction to prevent several trade union leaders from entering the vicinity of the CBSL. They also called not only the Police with water cannons but also the military to quell and disperse our protest. However, we communicated our request for a meeting with the CBSL. Following our request, CBSL informed us through the Police that they could accommodate a meeting with five representatives. They were trying to undermine the diversity of the protest organised through a coalition of over 40 organisations. 

We communicated our willingness to discuss with the CBSL and requested a meeting accommodating twenty of our representatives. CBSL agreed to our request and informed us that a comprehensive meeting with the participation of twenty of our representatives, along with the Governor of the CBSL, including the Secretary to the President, would be arranged within two weeks. Until then, a decision to finalise the DDR process will not be made. Following our mutual understanding, we called off our protest.

We are ready to participate in the agreed discussion. 

Our demands to engage CBSL go beyond EPF/ETF and DDR to last year when we raised concerns over capital outflows through imports and exports. We have continued to demand CBSL engagement with working people over the issue of EPF and pension funds. However, CBSL has adopted an arrogant and technical approach, purposefully to keep a majority of working people at bay and in the dark about the harsh impact of DDR on pension funds. It is a shame that CBSL behaved cowardly, and resorted to repressive measures by calling the Police and obtaining court injunctions. It did so to damage and humiliate trade unions that were challenging the CBSL’s plan to destroy workers’ savings. 

We call on the broad community of EPF/ETF members, other pension funds, and the public to gather around trade unions to defeat CBSL and the Government’s efforts to rob our savings! No to deceit or robbery! (NewsWire)

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The Supreme Court of Sri Lanka has dismissed the Fundament Rights (FR) Petition filed pertaining to the Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF) related to the Domestic Debt Optimization process.

The petition was filed by Attorney-at-Law Sunil Watagala on behalf of the Inter-Company Employees’ Union, its President Wasantha Samarasinghe and six others.

The petitioners sought an order from the Court preventing the government from waiving off the loans obtained from the EPF and ETF during the Domestic Debt Optimization process.

However, the Supreme Court today dismissed the petition without taking it up for hearing. (NewsWire)

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The Employees’ Provident Fund Act will be amended to ensure at least a 9% annual interest rate to EPF members, Cabinet Spokesman Minister Bandula Gunawardene said today.

Addressing the weekly Cabinet media briefing, Minister Gunawardene stated that the amendment will see at least a 9% annual interest rate for the next four years from 2023.

Issuing the Cabinet decision in this regard, the government stated that it has recognized the requirement of ensuring the payments and benefits of the Employees’ Provident Fund (EPF) without any burden to the pension payments and benefits of the members of that fund due to the local treasury bonds idealizing programme. 

Therefore, considering the annual interest benefit percentages paid for the members of the EPF during the past five years period, the Cabinet of Ministers has approved the proposal submitted for taking necessary measures to amend the Employees’ Provident Fund Act No. 15 of 1958.

The proposal submitted by the President, in his capacity as the Minister of Finance proposes that the minimum annual interest rate on the contribution within the next four (04) years from 2023 -2026 should at least be 9%. (NewsWire)

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The Employees Provident Fund (EPF), Sri Lanka’s largest superannuation fund, was also the predominant holder of Government Treasury Bonds at the end of 2022, according to PublicFinance.lk. 

The Sri Lankan government unveiled its Domestic Debt Restructuring plan on June 28, 2023.

A key component of this plan is the restructuring of bond holdings associated with superannuation funds, which are funds set up for retirement benefits, the platform for public finance-related information in Sri Lanka noted.

The infographic below illustrates that the EPF was also the predominant holder of bonds at the end of 2022. (NewsWire)

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The Sectoral Oversight Committee on Foreign Employment & Labor has revealed that several plantation companies have defaulted on Employees’ Provident Fund (EPF) payments and have huge arrears to the EPF.

According to a statement from the Parliament of Sri Lanka, it was also revealed before the committee that due to contradictions in the information given about 700 million rupees paid by the companies in the estate sector, it has not been possible to account.

These issues were discussed when the Sectoral Oversight Committee on Foreign Employment and Labor met in June under the chairmanship of MP Hector Appuhami.

MP Appuhami instructed the representatives of the plantation companies to protect the employees and to carry out the arrears to be paid to the EPF and the current monthly payments in a systematic manner.

The committee further advised the officials that by starting the accounts according to the National Identity Card number, the problems of having multiple accounts for the same person can be avoided.

State Minister Dr. Sitha Arabepola, Members of Parliament Mahindananda Aluthgamage, Chandima Weerakkodi, S.M Marikkar, K. Sujith Sanjaya, Ishaq Rahman, Vadivel Suresh, Velu Kumar, M. Udayakumar, and Thushara Indunil were present at the committee meeting.

The Secretary of the Ministry of Labor and Foreign Employment, the Labor Commissioner, officials of the Employee Provident Fund and representatives of plantation companies also participated in the meeting. (NewsWire)

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A new gazette notification has been issued making it mandatory for professionals from 14 categories to be registered with the Department of Inland Revenue.

Doctors, Engineers, Chartered Accountants, Architects, and Attorneys-at-Law of the Supreme Court, among others, are on the list of selected professionals.

The eligible professionals are required to register with the Department of Inland Revenue from today, June 1st, 2023.

1. Practitioners registered with the Sri Lanka Medical Council

2. Members of the Institute of Chartered Accountants of Sri Lanka

3. Members of the Institute of Certified Management Accountants of Sri Lanka

4. Members of the Institution of Engineers Sri Lanka

5. Members of the Association of Professional Bankers

6. Members of the Sri Lanka Institute of Architects

7. Members of the Institute of Quantity Surveyors Sri Lanka

8. Attorneys-at-Law of the Supreme Court of Sri Lanka

9. Individuals who have registered their businesses in Divisional Secretariats

10. Individuals who are in possession of vehicles registered (other than three-wheelers, motorcycles and hand tractors) in Motor Traffic Department

11. Individuals who have purchased or acquired, by virtue of Deeds Transfer, of any immovable property in Sri Lanka on or after April 01, 2018

12. Employees whose monthly contribution from both employee and employer to any Provident Fund is more than Rs. 20,000

13. Any individual who obtains approval for a building plan from a Local Authority

14. Any other individual who receives payment of Rs. 100,000 per month or Rs. 1,200,000 for a 12-month period for providing any services in Sri Lanka

In addition, any individual who does not belong to any of the aforementioned categories, but is aged 18 years or more as at December 31, 2023, or attains the age of 19 years on or after January 01, 2024, is also required to register themselves with the IRD. (NewsWire)

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