Government Moves to Take Control of EPF and ETF Under New Tripartite Board Structure

The Sri Lankan government is considering a significant restructuring of how the country's two major employee benefit funds — the Employees' Provident Fund (EPF) and the Employees' Trust Fund (ETF) — are managed, with plans to bring both under the authority of a newly proposed tripartite board.

At present, the EPF operates under the supervision of the Central Bank of Sri Lanka, while the ETF falls under the purview of the Ministry of Labour. The proposed changes would consolidate oversight of both funds under a single governing structure, representing a notable shift in the institutional management of workers' retirement savings.

What Is a Tripartite Board?

A tripartite board typically brings together representatives from three key stakeholder groups — the government, employers, and employees or trade unions. Such a structure is intended to ensure that all parties with a vested interest in the funds have a voice in how they are governed and invested.

The move has been framed by the government as an effort to improve accountability and democratic representation in the management of funds that collectively hold billions of rupees belonging to Sri Lanka's working population.

Significance for Sri Lankan Workers

The EPF and ETF together represent the primary formal retirement safety net for millions of private sector employees across the country. Any structural changes to how these funds are governed are therefore of considerable importance to the Sri Lankan workforce.

• The EPF is one of the largest funds in Sri Lanka, managing the mandatory provident contributions of private sector workers.
• The ETF provides additional employee benefits, including grants upon retirement, death, or invalidity.
• Both funds have long been subjects of public debate regarding transparency and the returns provided to members.

Critics and trade union representatives have in the past called for greater worker representation in the decision-making processes of both funds, arguing that employees whose money is being managed should have a stronger say in investment decisions and governance policies.

Government's Position

While full legislative and policy details of the proposed tripartite board are yet to be publicly disclosed, the government's move signals an intent to reform the existing institutional framework. Observers note that such a restructuring could also have implications for the independence of the Central Bank, which currently plays a key custodial role over the EPF.

Further details on the composition, powers, and timeline for the establishment of the proposed board are expected to emerge as discussions between relevant stakeholders progress. Sri Lankan workers and employer associations are likely to watch these developments closely, given the direct impact any governance changes would have on the security and growth of their accumulated funds.

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