EFC Calls for Stronger Governance in Sri Lanka Funds

The position paper highlights the need for stronger governance structures to ensure that social security funds operate in the best interests of their members and beneficiaries.

The Employers' Federation of Ceylon (EFC) has submitted a detailed position paper to Sri Lanka's Minister of Labour, Anil Jayantha Fernando, outlining proposals to strengthen governance and improve transparency within the country's key social security institutions.

The paper, titled Preserving Beneficiary Interests in Sri Lanka's Social Security Institutions Through Good Governance, was developed through a collaborative initiative involving the EFC, the International Labour Organization's Bureau for Employers' Activities (ACTEMP), and the International Training Centre of the ILO.

The effort also brought together employers and other stakeholders through the newly formed EFC Employers' Network on Social Security, which was established to encourage dialogue on reforms related to the Employees' Provident Fund (EPF) and Employees' Trust Fund (ETF).

Focus on Transparency, Accountability and Representation

The position paper highlights the need for stronger governance structures to ensure that social security funds operate in the best interests of their members and beneficiaries. Drawing on international experiences and best practices, the document examines areas such as board composition, investment oversight, governance frameworks, and the use of digital technologies to improve administration and service delivery.

Among the key recommendations is the introduction of legislative reforms that would guarantee balanced representation of employers and workers on the governing boards of both the EPF and ETF. The paper also proposes qualification requirements for board members to help ensure that decision-makers possess the expertise needed to oversee large and complex financial institutions.

Another recommendation calls for the establishment of an independent investment committee for the ETF to strengthen oversight and improve investment management practices.

Digital Reforms Could Improve Services for Members

The paper also advocates for the introduction of unique identification numbers for social security members, a measure aimed at improving transparency, reducing administrative challenges, and enhancing access to services. Supporters of the proposal believe digital tools can play a significant role in modernizing the management of social protection schemes while making it easier for members to track their benefits and interact with the system.

The EFC says the initiative reflects the private sector's commitment to contributing constructively to policy discussions and supporting the development of sustainable and well-managed social security institutions. Through the Employers' Network on Social Security, the organization hopes to encourage evidence-based discussions, promote international best practices, and build greater confidence in Sri Lanka's social protection system.

The recommendations come at a time when governments and institutions around the world are increasingly focused on strengthening governance standards to ensure long-term sustainability, transparency, and accountability in social security funds that manage the retirement savings and benefits of millions of workers.