Sri Lankan authorities are taking diplomatic steps to secure social security contribution refunds for their nationals working in Cyprus, who currently receive no benefits upon leaving the island.
Member of Parliament Lakshman Nipuna Arachchi (National People’s Power – NPP) announced in December that action would be taken to recover social security contributions deducted from Sri Lankan workers’ salaries in Cyprus. Speaking at an event in Colombo, the country’s capital, he described the inability of workers to claim these contributions as “a significant issue.”
Approximately 7,000 Sri Lankan nationals work in Cyprus, with the 2021 census recording 6,792 residents of Sri Lankan origin. Despite making mandatory social security contributions alongside their employers, these workers cannot access their contributions upon departing Cyprus.
Cyprus currently maintains bilateral social security agreements with 14 countries, including the UK, Greece, Egypt, Canada, Australia, Austria, Slovakia, Switzerland, Czech Republic, Netherlands, Bulgaria, Serbia, and Syria.
Agreements with EU countries have been superseded by EU regulations 883/04 and 987/09, which coordinate social security systems among member states.
However, no such agreement exists with Sri Lanka, whose government has now indicated it will pursue diplomatic measures to address this gap.
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