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CFL urges government to abandon USAID inspired labour reforms
The Ceylon Federation of Labour (CFL) has accused President Gotabaya Rajapaksa of “clandestinely” undertaking a program of labour reforms through the Ministry of Justice “to set, what is euphemistically called, a conducive environment for investment, especially Foreign Direct Investment (FDI).”
In a statement iussued last week, CFL General Secretary TMR Rasseedin said that these changes are sought to be made through the justice ministry usurping the functions of the labour ministry and called upon the government to abandon these ongoing efforts.
“At the very outset it has to be categorically stated that the mandate the government received from the country at the last Presidential and Parliamentary Elections did not include labour law reforms and that too with the assistance of a foreign agency with questionable antecedents.
“Labour reforms find no mention in President Rajapaksa’s Manifesto ‘Saubagya Dekma’. We are astonished to find that the Ministry of Justice (MoJ) has been engaged to review labour laws with the assistance of USAID, sans involvement of the Ministry of Labour and relevant stakeholders.”
Such an exercise, if at all, should be handled by the Ministry of Labour (MoL) and not by any other agency and, by doing so, the MoJ is usurping the role and responsibilities of the MoL to oversee matters involving labour in the country, the statement said.
“We hold the view that the MoL and the Department of Labour (DoL) hold the sole responsibility to manage issues related to labour in the country and oppose such interference by outside authorities. Previous attempts to promote such reforms catering to employer demands have been successfully beaten back by trade unions.
“In 2017 during the Yahapalana period, the then Minister of Labour abdicated his role and acquiesced in allowing the Ministry of Development Strategies & International Trade, with the assistance of some surrogate unions and the USAID to initiate labour reforms which were stymied in time by a strong protest by the overwhelming majority of unions in the National Labour Advisory Council (NLAC), the statement said.
“This project is now being revived under the MOJ whose Minister recently earned notoriety for some uncalled for remarks on strikes, exposing the limits of his knowledge of not only international law but also our own National Workers Charter which continues to govern our labour relations. It has to be stated that unless otherwise officially retracted, the National Workers Charter constitutes the policy framework that regulates labour affairs in the country.
“We urge the Minister of Justice to take stock of the ground reality before he ventures into unfamiliar terrains such as labour reforms. In an evidence-based comparison of labour market regulations vis-a-vis FDI, CFL has found out that there is no empirical evidence to justify the type of labour law regime that capital is seeking to advance in order to enhance its profit.
“The statistics obtained by the CFL covers key East and South Asian economies such as Vietnam, Indonesia, Cambodia, China, Myanmar, Pakistan, Bangladesh, India and Nepal with which Sri Lanka is in competition to attract FDIs for export-based manufacturing industries.
“The labour markets of some of these countries are often quoted by local authorities and some policy advocates as ideally positioned for the inflow of FDIs. As verifiably evidence from the online statistical base of the Doing Business 2019 World Bank Report, labour market regulation in Sri Lanka is clearly the worst or far below average when compared with the above key regional economies “
This was in respect of matters such as Minimum Wages Statutory protection in hiring i.e. probation periods, fixed term contracts etc as well as many others, CFL said.
It said the present Minister of Labour sought to give a more precise definition to the different employment categories such as Fixed Term, etc. when he gazetted the Minimum Retirement Age of Workers Bill on 12.10.21.
“However, during its passage through Parliament, we saw the Interpretation Clause being reworked to appease employer interests. The CFL understands that the main focus of the MoJ-USAID inspired labour law reform agenda is to further whittle down clauses from our statutes such as these which protect workers and thereby pave the way for a race towards the bottom.,” the statement said.
“The politically ill-advised and cronyism-driven present exercise of the MoJ under the aegis of a foreign government development agency with a questionable political record has to be stymied before it further degrades the labour laws of the country, which even today is way below average for the region.”
The Ceylon Federation of Labour urged the government “to abandon this clandestine project without stirring unrest among the working class that may well turn out to be calamitous for the government.”
Latest News
Sun directly overhead Bentota, Thiniyawala, Iththakanda, Udawalawe, and Kataragama about 12.08 noon t9day (06)
The sun is going to be directly over the latitudes of Sri Lanka from 28th of August to 07th of September due to its apparent southward relative motion.
The nearest places of Sri Lanka over which the sun is
overhead today (06) are Bentota, Thiniyawala, Iththakanda, Udawalawe, and Kataragama about 12.08 noon
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UN welcomes Lanka’s anti-graft drive, seeks end to impunity
MONETABRIEF –The UN human rights chief on Thursday welcomed Sri Lanka’s robust anti-corruption drive but urged President Anura Kumara Dissanayake to apply the same vigour to ending impunity for continuing rights abuses.
In its latest report to the UN Human Rights Council in Geneva, High Commissioner Volker Turk noted that cases of torture and deaths in custody continued to be reported in Sri Lanka despite the change of administration.
“While it is encouraging that the Sri Lankan authorities have taken action to address corruption cases and some crimes linked to the post-war period, more needs to be done to end the long legacy of impunity in the country,” the rights chief said.
His report, covering October 2025 to July 2026, notes steps to tackle corruption, including high-profile arrests and investigations linked to political killings, enforced disappearances and the 2019 Easter Sunday attacks.
He said it had been a difficult period for Mr Dissanayake’s new government, following the devastating Cyclone Ditwah which killed some 650 people and devastated much of the island and a global spike in energy prices.
The report noted that the Human Rights Commission of Sri Lanka had documented 602 cases of torture and ill-treatment in 2025 and 138 cases by April 2026.
The local commission also reported 18 deaths in custody last year and a further three by April this year. In one such case, a 40-year-old inmate detained for a minor drug-related offence died at Welikada Prison in Colombo on 3 May, allegedly from severe beatings.
“This Government still has an opportunity to turn the tide on decades of abuse of executive power, repressive laws and custodial violence, and entrenched impunity,” Turk said.
He regretted that the government had yet to deliver on its promise of legal and institutional reforms and continued to apply the repressive Prevention of Terrorism Act (PTA), resulting in arbitrary arrests and prolonged detention without charge.
Civil society actors, activists and journalists remained subject to state surveillance, while tensions over land and religious sites continued to simmer, the report said.
It also highlighted violent riots at Negombo Prison in July, which left at least 32 dead, underscoring the urgent need for prison reform to address systemic issues, including severe overcrowding.
The UN Human Rights Office had received at least 16 allegations of surveillance against civil society actors, activists and journalists, the report said.
There was “a clear and continuing pattern of state surveillance, intimidation and reprisals by military and intelligence officials, including from the Criminal Investigations Department or the Terrorism Investigation Division”.
“Individuals are repeatedly questioned about their travels, especially to Geneva and engagement with UN human rights processes, as well as their organizational affiliations, funding sources, and participation in protests or commemorative events.”
While the Government had continued to denounce racism and promote national unity, wider efforts to ensure truth and justice risked stalling and the momentum for transformative change being lost, the report warned.
Failures to effectively investigate and prosecute crimes under international law allegedly committed during the armed conflict persisted.
“It is crucial that there is decisive and meaningful action toward accountability for crimes and violations by all parties during the more than two-decade armed conflict,” Turk said.
He noted the recent decision by the Attorney-General to indict former Eastern Province Chief Minister Sivanesathurai Chandrakanthan, also known as Pillayan, and three others in connection with the abduction and murder of former Eastern University Vice-Chancellor Professor Sivasubramaniam Raveendranath in 2006.
“It is, however, regrettable that many other serious emblematic cases remain stalled for years, including the killing of 17 Action Contre La Faim aid workers in Muttur 20 years ago,” he said, calling for meaningful steps to resolve such delays.
The High Commissioner urged Sri Lanka to redouble its reconciliation and accountability efforts. He called for a moratorium on the use of the Prevention of Terrorism Act pending its repeal, as well as the release of long-term detainees held under it.
He also called for all individuals credibly accused of human rights violations to be excluded from senior positions in government, the security sector or the diplomatic service until such allegations were genuinely addressed and resolved.
He urged the Government to support victims’ memorialisation initiatives and to release military-occupied lands.
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Dispute which triggered listed company director being detained at BIA resolved
A dispute between a wholly owned subsidiary of Lanka Realty Investments PLC, Mulberry Holdings (Pvt) Ltd., and a contractor, Omni Engineering & Trading Solutions, that resulted in Executive Director Hisham Jamaldeen of Lanka Realty being stopped at Katunayake and prevented from leaving on a business visit to the UK has been resolved with Jamaldeen bailed and the travel ban imposed on him revoked by the Maligakanda Magistrate, Lanka Realty’s said in a Stock Exchange filing last week.
This followed Mulberry agreeing to pay Rs. 25 million to Omni on or before Sept. 26.
Following media reports of Jamaldeen being prevented from leaving the country at the BIA, Lanka Realty made two Stock Exchange filings on Sept. 3 – the first detailing the dispute between the two parties and the second indicating that the matter had been settled.
In the first filing, the Secretaries for Lanka Realty said:
“The article refers to Mr. Mohamed Hisham Jamaldeen, Executive Director of Lanka Realty Investments PLC and a Director of Mulberry Holdings (Pvt) Ltd, a wholly owned subsidiary of the Company and the developer of “Mulberry Residences” in Colombo 10.
“Mulberry Holdings (Pvt) Ltd entered into a construction contract with Mr. Randika of M/s Omni Engineering & Trading Solutions on 21st June 2022 for a sum of LKR 32,854,992.00), which is less than 1% of the total value of the “Mulberry Residences” Project which is around LKR 3.6 Billion.
“The said contract is governed by the CIDA/SBD1 Standard Bidding Document Conditions of Contract, which provides for adjudication and, if required, arbitration as the applicable dispute resolution process. The Company understands that the underlying matter relates to a contractual payment dispute involving Mulberry Holdings (Pvt) Ltd’s aforcsaid contract.
“Following a call received from the Colombo Crime Division (CCD), Mr. Jamaldeen went to the CCD on 25th August 2026 and provided a statement in relation to the matter inter alia explaining that the matter in dispute was arising from a civil contract. He was not arrested on that date and was not informed at that time or thereafter prior to receiving information at the Airport, that a travel ban had been imposed.
“On 2nd September 2026, while travelling overseas for business on a pre-arranged itinerary, Mr. Jamaldeen was informed at immigration of a travel ban imposed on 24th August 2026, following which he was arrested by the CCD. A bail application is expected to be made when Mr. Jamaldeen is produced before the Magistrate’s Court of Maligakanda today, 3rd September 2026.”
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