FSP Warns EPF-ETF Merger Will Harm Private Sector Workers, Accuses NPP of Reviving Old Political Agenda

The Front-line Socialist Party (FSP) has raised serious concerns over the National People's Power (NPP) government's proposal to merge the Employees' Provident Fund (EPF) and the Employees' Trust Fund (ETF) under a single, unified tripartite governance framework, warning that such a move would prove deeply harmful to private sector workers across Sri Lanka.

Old Wine in a New Bottle, Says FSP

Speaking out on Monday, the FSP alleged that the NPP administration is essentially attempting to push through a policy agenda previously championed by both the United People's Freedom Alliance (UPFA) and the United National Party (UNP) — two political forces the NPP has positioned itself against. The party accused the government of repackaging a long-contested plan under a fresh political identity.

The FSP's criticism centres on the argument that merging the two funds would undermine the distinct protections and benefits that private sector employees currently enjoy under each scheme. The EPF and ETF, while both serving as retirement and welfare mechanisms for workers, operate under separate mandates and governance structures that the FSP insists must be preserved.

Workers' Interests at Stake

The party stressed that any restructuring of these funds without the genuine, informed consent of workers and their trade union representatives would amount to a betrayal of the labour force. The FSP called on the government to abandon the merger proposal and instead focus on strengthening the individual funds to better serve their respective beneficiaries.

• The EPF is Sri Lanka's largest retirement savings fund, covering millions of private sector employees.
• The ETF provides additional welfare benefits including gratuity-related payments to private sector workers.
• Both funds are administered separately, with distinct contribution structures and entitlements.

Political Motivations Questioned

The FSP alleged that the NPP government is implementing a plan originally conceived by the UPFA and UNP, raising questions about whose interests the proposed merger truly serves.

The FSP's intervention is expected to intensify public debate around the proposed restructuring, particularly among trade unions and labour advocacy groups who have historically been protective of worker entitlements tied to both funds. The government has yet to issue a detailed public response to the FSP's allegations.

As the discussion unfolds, private sector workers and their representatives will be watching closely to see whether the NPP administration proceeds with the contentious merger or reconsiders its position in the face of mounting opposition.