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Winners and Losers of Sri Lanka’s Work from Home Policy

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A new publication by the Institute of Policy Studies of Sri Lanka (IPS) has identified that a key barrier to remote work in Sri Lanka is the lack of relevant regulations and legislation governing the Work from Home (WFH) practice. Accordingly, the publication advocates legal reforms to facilitate WFH and improve labour market activities in the country amidst the ongoing economic crisis. The study notes that the Home Work Convention, 1996 adopted by the International Labour Organization (ILO) can be a springboard to reform domestic laws.

The latest IPS publication, ‘Winners and Losers of Sri Lanka’s Work from Home Policy’, is authored by Suresh Ranasinghe and Dr Nisha Arunatilake. The authors note, “The main legislations that provide a legal framework for work and remuneration such as the Shop and Office Act No. 19 of 1954 and the Wages Boards Ordinance No. 27 of 1941 do not facilitate WFH. Thus, it is vital to reform existing laws to facilitate WFH. The international standards included in the Home Work Convention, 1996 can be used to reform domestic laws to provide legal solutions to contemporary labour market problems.”

The authors also call for increased investment in Information and Communications (ICT) infrastructure, together with training and financial support for workers. Given the nature of employment, however, workers in some occupations will find it challenging to WFH and as such, exploring means of supporting these workers is worthwhile to restore economic activities. Alongside this, employees’ well-being and continued productivity must be ensured. Therefore, attention should be paid to employees’ working time, performance, digitalisation, communication, occupational safety and health, and work-life balance.

The IPS study finds that the feasibility to work remotely in Sri Lanka is generally balanced by age, but it is significantly unbalanced by gender, educational attainment, income level, occupation, firm size, sector, and geographical location. Experiences of many developing as well as developed countries imply that severe recession can have negative impacts on future earnings and job security. Given this, remote work can be used as a long-term policy tool to enhance the available employment opportunities and safeguard employment. Thus, it is essential to identify the potentials and pitfalls of the WFH policy to facilitate the development of the WFH practice within Sri Lanka’s unique labour market context.

According to the study, workers in the ICT, education, finance, and insurance sectors benefit the most. Generally, these occupations require less physical proximity and have a high reliance on digital tools and technologies. However, those in the agriculture and industrial sectors have low WFH feasibility, and notably, most employees are in occupations where the feasibility to work remotely is low. Those who are less educated and reside in the estate sector also have very low WFH feasibility. Not surprisingly, employees’ ability to WFH increases with the level of English literacy but slightly deteriorates with age. Similarly, the ability to WFH is high in the Western province of Sri Lanka while the Southern, Northern and Eastern provinces have low plausibility to WFH.

The study contends that WFH can be used as a policy tool to address problems relating to female employment. Many legal loopholes do not cover the major problems faced by female employees. Further, day-to-day travelling to the office and home is a burden and health concern faced by pregnant female workers. In this context, remote work can be used to facilitate pregnant female workers by including a WFH policy in the existing legislation. Additionally, when employers design flexible work arrangement facilities, support must be given to female employees with care responsibilities. Equally, to enable female employees to WFH, it is vital that employers continue to promote family-friendly policies to encourage men to share the responsibilities of household activities.

To purchase a copy of ‘Winners and Losers of Sri Lanka’s Work from Home Policy’, contact: Amesh Thennakoon, Publications Officer, IPS on 0773 737717 or amesh@ips.lk. For more information on IPS publications, visit: https://www.ips.lk/publications.



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ADB approves $100 million loan to boost skills development and jobs for youth in Sri Lanka

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The Asian Development Bank (ADB) has approved a $100 million results-based loan to help Sri Lanka transform its technical and vocational education and training (TVET) system, equip more young people with industry-relevant skills, and strengthen the country’s competitiveness and inclusive growth.

The Skills Development System Transformation Program will support the Government of Sri Lanka’s efforts in improving the quality and relevance of skills training, strengthening links between training providers and industries, and expanding employment opportunities for youth. The program will increase women’s employment opportunities in nontraditional jobs in fields including automotive technology, engineering, information and communications technology, construction, and renewable energy.

“A skilled workforce is essential to Sri Lanka’s long-term economic transformation and competitiveness,” said ADB Country Director for Sri Lanka Shannon Cowlin. “This program will help create stronger pathways from education to employment by making training more responsive to industry needs, expanding opportunities for young people and women, and ensuring that graduates have the skills required by a modern and evolving economy.”

Though Sri Lanka’s economy is recovering, it faces skills shortages in priority sectors, high youth unemployment, and low female labor force participation. Many employers report difficulty finding workers with the skills needed in a changing economy.

Aligned with the Government of Sri Lanka’s Technical and Vocational Education and Training Sector Strategic Framework 2026–2035, the nationwide program will be implemented from 2027 to 2031 and is expected to directly benefit more than 100,000 young people through improved access to quality, employment-oriented training.

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USD 40.84m pipeline to secure aviation fuel supplies to BIA

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By Ifham Nizam

The government has cleared a USD 40.84 million and Rs. 8,548.75 million contract to build a dedicated aviation fuel pipeline from Muthurajawela to Bandaranaike International Airport (BIA), alongside a massive new fuel storage facility with a capacity of 92,000 cubic metres.

Energy Minister Anura Karunatilaka said the project represented a major investment in strengthening the infrastructure underpinning Sri Lanka’s aviation fuel supply and ensuring more reliable fuel availability at the country’s main international airport.

‘This project will provide the infrastructure required to strengthen the reliability and continuity of aviation fuel supplies to Bandaranaike International Airport, Karunatilaka said.

The contract has been awarded to China Petroleum Pipeline Engineering Company Limited, following an international competitive procurement process in which three bids were received.

The project will see a new aviation fuel storage tank complex constructed at Muthurajawela, together with the associated infrastructure required for handling and transferring aviation fuel.

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CSE activity up, turnover weak at Rs. 1.4 billion

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By Hiran H Senewiratne 

Trading activity on the Colombo Stock Exchange (CSE) gathered pace yesterday as global fuel prices began to show signs of easing, according to market analysts.In this context, both indices moved upwards. All Share Price Index up by 67.97 points while S and P SL20 up by 8.30 points.

Turnover stood at Rs 1.4 billion with seven crossings. Those crossings were reported in Sampath Bank 1.7 million shares crossed to the tune of Rs 238 million and its share price traded at Rs 140, Access Engineering two million shares crossed to the tune of Rs 159 million and its share price traded at Rs 79.50, LOLC one million shares crossed to the tune of Rs 129 million and its share price traded at Rs 129, HNB 100,000 shares crossed to the tune of Rs 38.4 million and its share price traded at Rs 384, JKH 1.9 million shares crossed to the tune of Rs 35 million and its share price traded at Rs 18.60, Hayleys 100,000 shares crossed to the tune of Rs 22.50 million and its share price traded at Rs 225 and Richard Pieris 847,000 shares crossed to the tune of Rs 22 million and its share price traded at Rs 25.50.

In the retail market top seven companies that have mainly contributed to the turnover were Sampath Bank Rs 114 million (813,000 shares traded), JKH Rs 100 million (5.3 million shares traded) LB Finance Rs 49 million (325,000 shares traded), HNB Finance Rs 30 million (27 million shares traded), HNB Rs 27 million (70000 shares traded), NTB Rs 25 million (82000 shares traded ) and Lanka IOC Rs 21 million (666,000 shares traded). During the day 65 million shares volumes changed hands in 10433 transactions.

The Banking and manufacturing sector counters performed well.  In the banking sector Sampath Bank let the market while manufacturing sector especially JKH also significantly performed well. With the fuel revision Land IOC also a significant stock at the floor.

Meanwhile, First Capital Treasuries said that Ramesh Schaffter resigned as a Non-Independent Non-Executive Director with effect from October 1, to facilitate the restructuring of the company’s board.

Yesterday the Central Bank announced the US Dollar rate as against rupee. The rupee was quoted flat at Rs 330.65/80 to the US dollar in the spot market , while bond yields dropped, dealers said.

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