Business
Threads of Resilience: Is Sri Lanka’s apparel sector prepared to face Pathogen X?
Chaya Dissanayake is a Research Assistant at the Institute of Policy Studies of Sri Lanka (IPS). She holds a B.Sc. (Hons) in Agriculture specialised in Agricultural Economics from the University of Jaffna and is currently reading for an MSc in Integrated Water Resource Management at the Postgraduate Institute of Agriculture, Peradeniya. Her research interests include agricultural policies and institutions; disaster risk management; poverty and inequality; SMEs; women and workforce.
By Chaya Dissanayake
Sri Lanka faces a high-risk situation with the looming threat of a potential future pandemic.
A recent IPS study reveals that the Sri Lankan apparel sector, particularly women workers, bore the brunt of the COVID-19 pandemic, with 24% of women not recalled for work during the pandemic’s initial phase.
Urgent streamlining of pandemic response policies for the sector is crucial to provide timely support and minimise losses in life and revenue.
The World Health Organization (WHO) is expressing concerns about the global community’s readiness for pathogen X, a highly contagious pathogen that could emerge in the future. Scientists predict a higher likelihood of its origin in tropical regions, placing Sri Lanka at considerable risk.
The COVID-19 pandemic severely impacted the livelihoods of millions of workers across Sri Lanka. The manufacturing sector, where workers are in very close proximity to one another, faced more challenging conditions than other sectors such as agriculture. Given the significance of the apparel industry in the manufacturing base and as a source of employment in Sri Lanka, this blog assesses the pandemic’s impact on female apparel workers and guides future policies to minismise the cost of similar episodes.
Disruptions to Livelihoods
At the onset of the COVID-19 pandemic, estimates from the Labour Force Survey 2020 data suggest that the apparel sector in Sri Lanka employed approximately 470,000 workers with 70% of them being women. The majority of these women are primarily in low-skilled positions, such as machine operators, line helpers and cutters. Approximately 33% of these female apparel workers are informal (for comparison only 13% of male apparel workers are informal). Focus group discussions revealed many apparel employees are internal migrants, living in shared rentals.
The pandemic response transitioned from an emergency response stage to a more organised response mitigating health and economic impacts over time (Infographic 1). The initial emergency response phase (March-June 2020) saw sudden lockdowns, income loss, and restricted access to healthcare. Apparel workers faced many challenges during this initial period due to the nature of their work and their living arrangements.
The situation was particularly dire for internal migrants in the apparel industry. Residing in overcrowded boarding houses, these workers struggled with implementing basic pandemic safety measures like physical distancing and quarantine. “Even though we were told to use separate washrooms, it was difficult to get those facilities in the boarding houses”; one female worker in Katunayake reminisced. Furthermore, the absence of systematic information to identify and provide social security benefits to individuals living outside their registered localities further exacerbated their vulnerability. According to the household survey to assess the impact of the COVID-19 pandemic carried out by the DCS, only 63% of all apparel workers received cash assistance provided by the government. In contrast, 71% of workers in the food processing industry and 68% of workers in the textile industry, in similar occupational categories, received emergency financial assistance. In discussions, female workers revealed that those from low-income families eligible for cash transfers missed out due to their residential status.
Abrupt job losses too led to severe financial consequences. Estimates based on the COVID-19 impact survey data suggest that, in the initial phase, 24% of women and 11% of men employed in the industry experienced job suspensions due to temporary factory closures. In contrast, the same statistic for all female workers in similar occupational categories across all sectors, was 11.3% while for male workers it was 12.8%. When the apparel factories restarted in May 2020, temporary workers, especially those who were part-time workers and line helpers, faced job suspensions without benefits as revealed in discussions. They were unable to find alternative employment and faced significant economic hardships.
Health and Social Challenges
Women workers during health crises face more pressure to allocate time for care work. The IPS study too observed that in the second phase of the pandemic, women apparel workers found it challenging to balance their work with the increased care responsibilities due to the frequent closure of schools and daycare facilities. Non-migrant workers received family and peer support, which migrant workers lacked.
Loss of livelihoods directly affected the nutrition and well-being of women despite the government’s relief measures including ration distribution. Again, estimates from the COVID-19 survey reveal the considerable impacts the initial lockdown had on apparel workers with regard to food security and employment (Infographic 2). Women were twice as likely to go without food or to quit the industry.
In addition to the economic shock, female workers faced greater challenges in accessing medical care in the first phase of the pandemic. In the apparel industry, the COVID-19 survey data show that 16.3% of women workers (twice that of male workers at 8.3%) had no or limited access to health services during the first phase. Many apparel workers rely on public transport, in its absence, accessing health services was difficult. Restricted mobility also affected the provision of maternal healthcare as midwives could no longer conduct home visits.
The absence of information on women apparel workers hindered effective responses. The IPS study interviews with key industry informants revealed that the Board of Investment’s attempt to identify and isolate at-risk individuals in export processing zones and the trade unions’ proposal for chemical sanitisation of shared worker accommodations failed due to the lack of a database on workers’ residential addresses for example.
Apparel workers also faced harrowing social stigma as ready-made garment factories were publicised as pandemic hotspots. “People in the village were afraid to help while quarantined because we worked in garment factories,” shared a woman who lived in a rented room in Katunayaka.
The export-oriented apparel industry in Sri Lanka adapted to the pandemic faster and maintained the employment level compared to other more domestic-oriented manufacturing industries. However, substantial health and economic impacts on women workers could be found, which need to be minimised in future pandemics to boost the resilience of the industry and the workforce.
The WHO stresses the importance of strengthening existing programmes with community-centered and evidence-based policy changes to counter the threat of pathogen X. One important concern is whether the policies would benefit all members of a community. As drawn from the IPS’ study observations, women faced more difficulties accessing health care, nutritional needs and necessities during the initial response. As the pandemic progressed, the widening gender gap became more pronounced due to women’s increased care work responsibilities.
Informed decision-making is critical for efficient pandemic containment, which necessitates quick access to information about vulnerable workers via centralized data. Given the large number of internal migrants in the workforce, improved information on workers will improve methods of delivering social benefits to them. For instance, providing safe living conditions to workers who live in congested housing, and making sure workers in low-income brackets receive aid in a future pandemic event could be made easier with such information. Another way to tackle the gaps revealed here is to involve more women in decision-making so that women-specific needs do not go unnoticed during emergency responses to crises.
Streamlining pandemic policy responses also includes expanding existing employment benefits programmes like EPF and ETF to cover abrupt unemployment due to crises, providing a financial buffer until re-entry into employment is feasible and reducing voluntary exits from the industry.
*This blog is based on an ongoing IPS study on improving pandemic policy response funded by the International Development Research Centre (IDRC).
Link to the original blog: https://www.ips.lk/talkingeconomics/2024/03/12/threads-of-resilience-is-sri-lankas-apparel-sector-prepared-to-face-pathogen-x/
Business
Dialog delivers strong growth, stronger national contribution in FY 2025
Dialog Axiata PLC announced, Friday 6th February 2026, its consolidated financial results (Reviewed) for the year ended 31st December 2025. Financial results included those of Dialog Axiata PLC (the “Company”) and of the Dialog Axiata Group (the “Group”).
Group Performance
The Group delivered a strong performance across Mobile, Fixed Line and Digital Pay Television businesses recording a positive Core Revenue growth of 16% Year to Date (“YTD”). Group Headline Revenue reached Rs179.6Bn, up 5% YTD, despite the continued strategic scaling down of low-margin international wholesale business. In Q4 2025, Revenue was recorded at Rs46.5Bn up 2% Quarter-on-Quarter (“QoQ”) and 2% Year-on-Year (“YoY”).
The Group Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) reached Rs86.0Bn up 30% YTD supported by Core Revenue performance and Cost Rescaling Initiatives. On a QoQ basis Group EBITDA demonstrated a modest growth to record at Rs23.0Bn up 2% QoQ with an EBITDA margin of 49.5% in line with the Revenue performance. Group EBITDA margin reached 47.9% for FY 2025, up 9.2pp.
Group Net Profit After Tax (“NPAT”) reached Rs20.8Bn for FY 2025, up 67% YTD mainly resulting from robust EBITDA growth, despite higher tax and net finance costs. Normalized for forex impact, NPAT growth was recorded at +>100% YTD to reach Rs22.1Bn. On a QoQ basis NPAT grew 3% to reach Rs5.9Bn resulting from strong EBITDA performance.
On the back of strong operational performance, the Group recorded Operating Free Cash Flow (“OFCF”)
of Rs49.3Bn for FY 2025 up >100% YTD.
Dividend Payment to Shareholders
In line with the dividend policy and financial performance of the Group and taking into account the forward investment requirements to serve the nation’s demand for Broadband and Digital services, the Board of Directors of Dialog Axiata PLC at its meeting held on 6th February 2026, resolved to propose for consideration by the Shareholders of the Company, a dividend to ordinary shareholders amounting to Rs1.50 per share. The said dividend, if approved by shareholders, would translate to a Dividend Yield of 5.0% based on share closing price for FY 2025. The dividend so proposed will be considered for approval by the shareholders at the Annual General Meeting (AGM) of the Company, the date pertaining to which would be notified in due course.
Company and Subsidiary Performance
At an entity level, Dialog Axiata PLC (the “Company”) continued to be the primary contributor to Group Revenue (76%) and Group EBITDA (74%). Aided by sustained growth in the Data segment and cost-rescaling initiatives, Company revenue was recorded at Rs135.8Bn for FY 2025, up 18% YTD, EBITDA rose 32% YTD to reach Rs63.6Bn. On a QoQ basis, Q4 2025 Revenue was recorded at Rs34.8Bn, down 1% QoQ due to a reclassification of Hubbing Revenue, while EBITDA decline 1% QoQ to record Rs17.0Bn, largely attributable to network restoration costs and donations made in relation to the Cyclone Ditwah relief efforts. Furthermore, NPAT was recorded at Rs15.6Bn for FY 2025, up 41% YTD. Normalised for forex impacts, the company NPAT was up +>100% YTD to reach Rs17.0Bn. On a QoQ basis, Company NPAT was recorded at Rs4.5Bn, down 6% QoQ.
Business
Ceylinco Life’s Pranama Scholarships reach 25-year milestone
Ceylinco Life has announced the launch of the 25th consecutive edition of its flagship Pranama Scholarships programme, marking a significant milestone in the company’s long-standing commitment to recognising and rewarding excellence among the children of its policyholders.
Under the 2026 programme, the life insurance market leader will present scholarships with a total cumulative value of Rs. 22.7 million, continuing a rewards initiative that has now been conducted without interruption for a quarter of a century. Since its inception, the Ceylinco Life Pranama Scholarships programme has benefitted 3,466 students across the country, representing a total investment of Rs. 240 million in nurturing academic achievement and outstanding performance in sports, arts and other extracurricular pursuits.
Business
Sri Lankans’ artistic genius glowingly manifests at Kala Pola ‘26
The artistic genius of Sri Lankans was amply manifest all over again at ‘Kala Pola ‘26’ which was held on February 8th at Ananda Coomaraswamy Mawatha Colombo 7; the usual, teeming and colourful venue for this annual grand exhibition and celebration of the work of local visual artists.
If there is one thing that has flourished memorably and resplendently in Sri Lanka over the centuries it is the artistic capability or genius of its people. It is something that all Sri Lankans could feel a sense of elation over because from the viewpoint of the arts, Sri Lanka is second to no other nation. With regard to the visual arts a veritable dazzling radiance of this inborn and persisting capability is seen at the annual open air ‘Kala Pola’.

A bird of Sri Lanka created from scraps of iron waste.
All capable visual artists, wherever they hail from in Sri Lanka, enjoy the opportunity of exhibiting their work at the ‘Kala Pola’ and this is a distinctive ‘positive’ of this annual event that draws numberless artists and viewers. There was an abundance of paintings, sketches and sculptures, for instance, and one work was as good as the other. Ample and equal space was afforded each artist. Its widely participatory and open nature enables one to describe the exhibition as exuding a profoundly democratic ethos.
Accordingly, this time around at ‘Kala Pola ‘26’ too Sri Lankans’ creative efforts were there to be viewed, studied and enjoyed in the customary carnival atmosphere where connoisseurs, local and foreign, met in a sprit of camaraderie and good cheer. Many thanks are owed once again to the George Keyt Foundation for the presentation of the event in association with the John Keells Group and the John Keells Foundation, not forgetting the Nations Trust Bank, which was the event’s Official Banking Partner. The exhibition was officially declared open by Chief Guest Marc-Andre Franche, UN Resident Coordinator in Sri Lanka.
By Lynn Ockersz
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