The Hon. (Dr.) Anil Jayantha - Minister of Labour and Deputy Minister of Finance and Planning

¶ 01 Hon. Speaker, the answer to that Question is as follows:

¶ 02 (a) (i) The Department of Labour issues notices to employers to recover contributions and surcharges to the Employees’ Provident Fund (EPF) based on routine field inspections and complaint investigations conducted by Labour Officers. Accordingly, since October 2024, as before, this task continues daily without interruption.

¶ 03 (ii) Under the EPF Act, once non-payment is confirmed, notices are issued to recover the contributions and surcharges for the entire period of default.

¶ 04 (iii) In addition to surcharges identified under (ii), when employers remit due contributions late to the Central Bank of Sri Lanka, the Department sends notices for surcharges calculated on the delay period. Identifying delays at the Central Bank requires time because notices must be generated per establishment from the system. Where employer remittance lists do not reconcile with the employee data system, information matching and corrections are required before entry, leading to delays in issuing notices. Long-standing staff vacancies at the Department and inadequacies in computer access and equipment have also contributed to delays.

¶ 05 (iv) No surcharge relief was provided in respect of the Easter Sunday attacks. However, a grace period was provided for payment of EPF contributions during the COVID-19 pandemic and the 2022 economic crisis. Institutions that paid within that grace period were granted surcharge relief. To date, surcharge waivers amounting to Rs. 109,800,657 have been granted to 291 institutions.

¶ 06 (b) Does not arise.