Building Inclusive Policies for a Modern and Collaborative Public Sector in Sri Lanka

by Upali Athukorala
Former Senior Assistant Secretary
(Foreign Relations) Ministry of Labour

The Cabinet of Ministers, at its meeting on 28th October 2024, granted its concurrence to implement the project titled “Social Dialogue for Peace and Crisis Prevention in Sri Lanka,” which is technically supported by the International Labour Organization (ILO) and financially backed by the Peace Building Fund of the UN Secretary-General. This initiative, implemented across the public, private, and informal sectors, is a collaborative effort involving the ILO, UNFPA, and UNESCO. The project builds upon the public sector initiative to introduce a Dispute Prevention and Resolution Mechanism in the Public Service, initially approved by the Cabinet of Ministers on 23rd November 2023 (Cabinet Paper No. 23/2138/605/068). The current Cabinet decision reinforces this earlier approval, highlighting the government’s commitment to fostering peace and social cohesion through inclusive dialogue and effective dispute-resolution mechanisms. This Article focuses only on the public sector initiative

The Public Service

The 2016 Public Sector Census reported Sri Lanka’s public sector workforce at approximately 1.4 million, which has grown to around 1.6 million according to the 2023 Budget speech. This workforce is critical in maintaining socio-economic stability and ensuring the delivery of essential goods and services to citizens. However, its efficiency is constrained by several challenges. Outdated and inefficient systems reduce productivity, while the limited adoption of modern technologies hinders the timely and quality delivery of services. Additionally, significant skill gaps and inadequate employee training limit their ability to meet the evolving demands of the public sector. Adversarial employee-management relations further complicate the situation, with employees feeling excluded from key decisions on pay and working conditions. This exclusion has resulted in frequent strikes and work stoppages. Such disruptions, coupled with perceived inequities and inconsistencies in employment practices, undermine morale, trust, and the overall functionality of the public service. Collectively, these issues impair the sector’s ability to deliver public goods and services effectively, negatively affecting citizens’ lives and the country’s development. Moreover, as Sri Lanka embraces open economic policies, the private sector is positioned as the engine of growth, fostering innovation, investment, and employment. A robust and efficient public service is essential to implement these policies effectively and create an environment that enables the private sector to thrive.

How to Address the Issues: A Three-Pronged Approach

Workplace Cooperation Through Social Dialogue

Sri Lanka’s current initiative to transform adversarial management relations hinges on implementing a multi-tiered social dialogue system. The country is making significant strides toward promoting workplace cooperation by providing platforms for dialogue at the workplace, sectoral, and national levels. These platforms enable public sector employees and management to engage in less aggressive, more collaborative processes, ultimately improving service delivery.

At each level, whether through workplace forums, sectoral dialogues, or national forums, the objective remains the same: to ensure that public service delivery is not disrupted by disputes while also addressing the concerns of public sector employees in a peaceful, democratic manner. Adopting these practices aligns with international standards, particularly those set by the International Labour Organization (ILO), and positions Sri Lanka as a country that respects and upholds labour rights while ensuring effective governance.

A comprehensive social dialogue framework is being proposed to address this gap, covering the entire field—from individual workplaces to ministries and national-level forums. These forums will allow employees, directly and through their representatives, to engage with their public service employer through information exchange, consultation, and negotiation processes, aiming to improve productivity and regulate changes to pay, as well as terms and conditions of employment.

Workplace forums promote open dialogue and collaboration between management and employees. They provide a structured environment where workplace issues can be discussed and concerns addressed, fostering mutual understanding. Such dialogue strengthens the working environment and contributes to the country’s social and economic development by encouraging transparency and cooperative problem-solving.

Training initiatives such as the Training of Trainers (ToT) programme are crucial at the workplace level. These programmes equip senior officials with the skills to lead dialogues and mediate disputes. By developing trainers with expertise in conflict resolution, the public sector can prevent conflicts from escalating into strikes or work stoppages. These workshops empower management and employees to engage in constructive conversations, focusing on mutual understanding and problem-solving.

At the sectoral level, forums are being introduced in historically contentious areas such as health, education, and transport. These forums consist of representatives from management and employees, often from trade unions, and are designed to address sector-specific issues. By institutionalising regular communication in these key sectors, the government aims to reduce the risk of adversarial relationships leading to disruptions in essential services.

At the national level, Sri Lanka is promoting national forums that bring together representatives from different public sector bodies, trade unions, and stakeholders. These national-level dialogues address systemic issues affecting employee-management relations across the public service and discuss implementing national policies to enhance workplace cooperation and service delivery.

The dialogue framework connects the National Public Service Dialogue Forum (NPSDF) with the Ministry of Finance and the Public Service Commission, ensuring that the decisions made by the forum are aligned with government policies and implemented effectively (See Figure 1). These two institutions play a critical role in translating the outcomes of sectoral councils and workplace forums into actionable strategies, particularly in resource allocation and regulatory compliance. Additionally, the framework establishes links between the dialogue forums and arbitration and mediation mechanisms. These mechanisms are instrumental in addressing and resolving conflicts during discussions, ensuring the process remains collaborative and solutions-oriented. This integration supports a robust conflict resolution system, enhancing stakeholder trust and cooperation.

Introducing Dispute Settlement Machinery

The proposed dispute prevention and settlement mechanism aims to bring critical structural changes to Sri Lanka’s public service. This includes introducing alternative dispute settlement mechanisms such as mediation and arbitration services and revising the roles of existing institutions like the Public Service Commission and Administrative Appeals Tribunal. Revising regulations such as the Establishment Code and enforcing Administrative Appeals Tribunal Orders at the Magistrate Court is also essential. These changes address the gaps in the current dispute prevention and settlement framework, leading to a more harmonious workplace.

Promoting Modern Human Resources Management Methods in the Public Service

The current approach to human resources in the Sri Lankan public service primarily focuses on personnel administration rather than on modern human resource management that aligns with the service’s larger mission and goals. To address this, the ILO study proposes implementing modern human resources development methods across the public service. This includes considerable investment in human resources functions, a comprehensive training component, and a robust monitoring mechanism.

In addition, it is recommended that the Ministry of Public Administration establish a public service-wide database to support these reforms facilitated by the Department of Census and Statistics. This database would help monitor progress, manage human resources effectively, and ensure the reforms are implemented smoothly.

Pilot Activities

The Railway Department has implemented its pilot programme for nearly two years, marking a significant advancement in fostering workplace dialogue within Sri Lanka’s public sector. Over this period, nine workplace forums have been successfully established, providing a platform for employees and management to address workplace challenges and improve operational efficiency collaboratively. Building on this foundation, actions are now underway to set up a sectoral forum for the entire Transport sector, which will unify the efforts of these forums, promote policy coherence, and address broader sector-wide issues. Inspired by the success of the Railway Department’s initiative, similar efforts are being made to establish workplace forums in the Ministry of Public Administration, Home Affairs, and Provincial Councils, as well as the Ministry of Education, further expanding the scope and impact of social dialogue in enhancing public sector governance.