News

The Shrama Vasana Fund, which was implemented with the objective of promoting the welfare of employees in the private and semi government sectors, was officially wound up on September 30, 2026.

Established under the Shrama Vasana Fund Act No. 12 of 1998 and later amended by Act No. 15 of 2019, the Fund’s primary purpose was to provide financial assistance and welfare support to employees.

In line with Cabinet Memorandum No. AMP/24/2198/801/008 dated 18 December 2024, presented by His Excellency the President under the theme “Review of Non Commercial State Institutions,” a committee chaired by the Secretary to the Prime Minister was appointed to review such institutions and make recommendations. The committee recommended that the Shrama Vasana Fund be wound up in a manner that would not disadvantage current beneficiaries.

Accordingly, welfare services previously carried out by the Fund that are not operated by other institutions will continue under the Ministry of Labour. These include:

1. Scholarship program for children of workers who died due to occupational accidents or became permanently disabled (60% or more).

2. Financial assistance is provided for employees facing termination of employment cases brought before Labour Tribunals, industrial disputes referred to arbitration or the Industrial Court, cases before the Commissioner for Workmen’s Compensation, and appeal cases related to the above disputes and the cases.

3. Short term financial relief for employees affected by sudden closure of institutions without prior notice.

4. Compensation payments for occupational accidents.

With the closure of the Fund, its staff were either absorbed into parallel positions at the National Institute of Labour Studies under the Ministry of Labour or opted to retire with compensation payments.

The winding up of the Shrama Vasana Fund ensures that all services previously provided will continue uninterrupted under the Ministry of Labour. As a result, employees in the private and semi government sectors will continue to enjoy their rights and welfare benefits. Moreover, by integrating these functions into the Ministry, administrative costs can be reduced and resources allocated more efficiently for other national priorities.

For further information regarding services previously provided by the Shrama Vasana Fund, the public may contact the Ministry of Labour via telephone at 0112368098.