Press briefing of Cabinet Decision taken on 2019-03-12

Amendments to the required Acts to facilitate the signing of Bilateral Social Security Agreements between Sri Lanka and India

- In accordance with the existing Labour Law in Sri Lanka, all foreign workers employed in Sri Lanka are covered by the Employees' Provident Fund Act, No.15 of 1958 (EPF) and are entitled to claim the total contribution made to the EPF with interest for the period of employment in Sri Lanka on account of cessation of the employment and return to their countries. Nevertheless, according to the existing Labour Law in India, a Sri Lankan worker working in India needs to contribute to the Indian Social Security System and is not entitled to withdraw his contribution until he attains the age of 58 years. In order to resolve this issue, it has been proposed to enter into a Bilateral Social Security Agreement between Sri Lanka and India to provide relief to the Sri Lankan expatriate workers working in India. In terms of this agreement, the Sri Lankan workers who work in India and contribute to the EPF in Sri Lanka will not be required to contribute to the Indian Social Security Fund. Further, the Sri Lankan workers in India who contribute to the Indian Social Security agreement without contributing to the EPF in Sri Lanka will have the ability to make an application to claim their contribution when they cease their employment in India. Accordingly, the proposal made by H.E. the President Maithripala Sirisena, to amend the Employees' Provident Fund Act, No.15 of 1958 enabling Sri Lanka and India to enter into a Social Security Agreement as per the request of the Non‑Cabinet Minister of Labour and Trade Union Relations, was approved by the Cabinet.