The government, as proposed in its 2011 budget, has decided to set up pension schemes to grant retirement benefits to all employees to ensure the well-being of the people who reach non-working age.

The government will set up three separate Contributory Pension Funds from May 01, 2011 for the private sector, the expatriate workers and for the self-employed.

Accordingly, Employees' Pension Benefits Fund, Foreign Employment Pension Benefits Fund and the Self-Employment Pension Benefits Fund will be set up separately through legislations.

Under the proposed scheme, Employees' Pension Benefits Fund will apply to any employee not covered by the government's pension scheme.

Foreign Employment Pension Benefits Fund will recognize the significant contribution made by expatriate workers to the country's economy. Any Sri Lankan in foreign employment can join this Pension Scheme.

The government is to provide one billion rupees to the fund as an initial capital and any funds laying to the credit of the Foreign Employment Bureau as of April 30, will be credited to this Fund.
The remittances from expatriate Sri Lankans amount to over three billion US dollars and it has helped to maintain the macro economic variables in a favourable manner.

Self-Employment Pension Benefits Fund will provide retirement benefits to the self-employed in the country. The government has allocated one billion rupees as an Initial to this Fund.