Kuwait fund to provide Rs. 2.1 bn for Rataviru pension scheme

Colombo, July 11 (Daily Mirror) - The government will introduce a new and more flexible pension scheme for Sri Lankan migrant workers, backed by Rs. 2.1 billion in funding from the Kuwait Fund, Deputy Minister of Foreign Affairs and Foreign Employment Arun Hemachandra told Parliament.

Responding to a private member's motion moved by MP Rohini Kumari Wijeratne, the Deputy Minister said the new Rataviru Pension Scheme aims to provide a more attractive and formal social security system for overseas workers, who remain a key source of foreign exchange for the country.

He said around 1.7 million Sri Lankans are currently employed overseas and that the country recorded its highest-ever foreign remittance inflows in 2025. However, only 307 migrant workers are enrolled in the existing pension scheme, highlighting the need for reforms.

Under the proposed system, migrant workers will be able to choose from flexible pension options based on their employment period and income level. They may opt to receive benefits as a monthly pension after retirement or as a lump-sum payment upon maturity.

Hemachandra said Rs. 2.1 billion has been allocated through the Kuwait Fund for the Rataviru Pension Scheme, with the government aiming to make significant progress in its implementation before December 31, 2026.

The Deputy Minister also announced plans to introduce a special mobile application in collaboration with the Ministry of Digital Technology to digitally record remittances sent by Sri Lankan migrant workers through legal channels.

The application will enable workers to obtain an official remittance report showing the total amount of money they have sent to Sri Lanka. Pension benefits will then be calculated transparently based on those verified remittance records.

He said the scheme will be implemented on a voluntary basis with the participation of the Sri Lanka Bureau of Foreign Employment, the Central Bank of Sri Lanka and the Ministry of Digital Technology.