ECONOMYNEXT – Sri Lanka authorities are looking at the possibility of providing a regular pension (annuity) to contributors of the Employees Provident Fund, Deputy Labour Minister Mahinda Jayasinghe said.
At the moment EPF is given as a lump sum at retirement age.
“We are looking at whether it is possible to provide a pension,” Jayasinghe told parliament Tuesday.
“I am not saying we will abolish this, but we are paying greater attention to whether a regular payment can be provided throughout their retired life.”
Not giving the lump sum at the end of retirement age had proved controversial in the past. With an ageing population, the EPF, which is used to fund budget deficits, is facing net outflows.
There have been concerns that Sri Lanka’s large public service bloated by unemployed graduates is consuming too much money as salaries and pensions. Therea re around 100,000 development officers.
State workers are paid pensions through an unfunded pension paid for by tax payers, including those who contribute to the EPF.
Jayasinghe was responding to a question on whether applicants who had asked for a second 30 percent early lump sum payments were facing difficulties.
Jayasinghe said there was a provision to take 30 percent of the balance out from 2015 and a second 20 percent 10 years later. The withdrawals had to be made for specific purposes for which documentary proof had to be given.
Out of 744 such applications 702 had been made.
The Employees Trust Fund gave more interim benefits to beneficiaries, but the EPF is set up for social security at retirement.
“Even the interim payments that are given from time to time undermines the ability to give security at the time of retirement,” he said. (Colombo/Jan05/2026)