ETF Act to be amended after 23 years
Changes to Sri Lanka’s Employees Trust Fund (ETF) Act are forthcoming to streamline and strengthen supervisory and regulatory powers entrusted to the ETF board.
The ETF amendment draft bill is now being finalised providing provisions for representation from the Ministry of Labour and Trade Union Relations in the ETF g ove r ning body, Cabinet Committee on Economic Management ( CCEM) sources revealed.
The fund now exceeds Rs. 248 billion and it has a membership of around 2.6 million employees. The fund is growing at the rate of 13 per cent per annum and the end of this year’s target is Rs. 275 million. The Act has been amended four times with the last amendment being in 1983.
According to a proposal presented to the cabinet earlier by former Finance Minister Ravi Karunanayake, an ex-officio member is to be appointed to the ETF board, namely the person holding the office of the Commissioner General of Labour.
It is also proposed to appoint a separate working director to streamline and regulate the ETF procedure.
The present board comprised nine members of which the Chairman/ CEO and working director is appointed with the majority consent of the board members.
The board is made up of four members nominated by the subject Minister; one nominee from the Finance Minister, one from the Minister in charge of trade, one from the Employers Federation of Ceylon and two members nominated by the Minister in consultation with trade unions.
According to the proposed amendment the present ETF board of directors will be re- constituted under the approval of the Executive Council and the Governor of the Central Bank and the Secretary to the Treasury or their representatives will be appointed to the board of directors.
ETF is a premier social security fund in Sri Lanka providing a wide range of non contributory financial benefits to private sector and non pensionable public sector employees on retirement cessation of employment.
The board is made up of four members nominated by the subject Minister; one nominee from the Finance Minister, one from the Minister in charge of trade, one from the Employers Federation of Ceylon and two members nominated by the Minister in consultation with trade unions.