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Safeguarding lives and livelihood of Sri Lankans

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Pandemics and Disruptions:

by Suresh Ranasinghe

The impact of COVID-19 on Sri Lanka’s labour market, education, migration, and health sectors were discussed at the second webinar panel discussion held on October 13, to mark the release of the ‘Sri Lanka: State of the Economy 2021’ report, the flagship report of the Institute of Policy Studies of Sri Lanka (IPS).

The event saw presentations by Dr Nisha Arunatilake and Dr Bilesha Weeraratne from IPS, with expert insights from Ms Madhavie Gunawardena, Director of TRCSL and Former Commissioner of Labour and Dr Kolitha Wickramage, Global Migration Health Research and Epidemiology Coordinator, Migration Health Division, International Organization for Migration (IOM). Ashani Abayasekera from IPS moderated the discussion.

Key highlights of the discussion are presented in this blog.

Presentation: Labour Markets and Education

Dr Nisha Arunatilake

An estimated 225 million people lost their jobs globally in 2020 due to COVID-19, according to the International Labour Organization (ILO). Sri Lanka’s labour market was also severely affected, with 150,000 people losing jobs and the quality of available jobs deteriorated with many workers taking on more vulnerable forms of employment (eg. agriculture, self-employment) that have low social security. The unemployment rate rose by 0.7% in 2020. The most affected were youth, low and medium-skilled individuals, and males, while several women left the labour market altogether.

The pandemic affected different types of workers differently. Frontline workers were the most vulnerable, and a large share of frontline workers are females. The ILO has classified industries according to their COVID-19-related economic output risk. This calculation was used to see how COVID-19 has affected different types of workers, and it shows that 39% of workers are in high-risk industries in Sri Lanka. Further, medium-skilled workers and women are more likely to be in high-risk industries.

The government took various measures to provide relief to workers, but the relief packages were given is not as sizeable as the types of relief provided in other countries.  IPS research shows that the perception of employees, employers, and trade union leaders is that the government could have done better by providing financial support through the EPF/ETF funds, as done in other countries like India.

The pandemic has highlighted the importance of providing pre-retirement social protection such as unemployment benefits and wage support during illnesses in addition to current post-retirement social protection measures. Therefore, it is necessary to create a separate fund to provide pre-retirement social protection as practised in Nepal, Malaysia, and Singapore.

A recent IPS study finds that, Sri Lanka’s ETF funds are sufficient to cover sickness and unemployment benefits to workers and provide wage support to retain jobs. In summary, the government must improve and expand access to social security for employees and firms, support firms to offer flexible work arrangements for higher labour participation and develop better labour market institutions that have the capacity to collect timely data and are prepared to address disaster risks.

Since March 2020, schools across Sri Lanka were closed other than for few brief periods of operation and the total number of school days missed are significantly higher in Sri Lanka compared to other countries. Even though the Ministry of Education and associated organisations provided lessons online and via TV, less than 50% of the students were reached online and in smaller schools, only 30% were reached by both online and TV. There needs to be an assessment done about the learning losses, and adjust the curricular, so that schools can focus on the most needed competencies to streamline and speed up the recovery.

Migration and Health

Dr Bilesha Weeraratne

A large number of migrant workers were forced to return much earlier than they planned due to the pandemic, and it affected earnings and their capacity to return. Notably, most of the returnees were either self-financed or their employer paid for their return air ticket. Limitations in Sri Lanka’s return and repatriation efforts were not able to bring a wide cross-section of returnees back to Sri Lanka from the onset itself. On average, there was a 4.5-month delay between the decision to return and the actual date of return. This was also because of the lack of proper information. Sri Lanka has a return and reintegration sub policy, and the issue was that it was not implemented.

Returning migrant workers require economic, social and psychosocial reintegration support but reintegration support was largely limited to immediate health support (testing, quarantine, treatment). Also, issues associated with the vaccination process in Sri Lanka such as irregular and inconsistent supply, delays in NMRA approvals, disorganised deployment etc. caused the delays in vaccinating potential migrant workers as well. However, the vaccination process for migrant workers was much better organised than the overall vaccination process in the country.

Sri Lanka sends 225,000 workers abroad while foreign annual exchange earnings is USD7 billion. Although in 2020 there were just 53,713 registered departures, remittances increased grew by 5.8%. They began declining since the beginning of 2021. There were many reasons for the growth last year like informal remittance channels being closed due to the lockdown and workers increasing their remittances through formal channels. Further, workers who were terminated would have got lump sums as terminal benefits which were remitted, while another reason would have been the reluctance of returnees to carry cash as they had to be quarantined on arrival.

Commentary: Labour Markets and Education

Ms Madhavie Gunawardena

The COVID-19 pandemic has flagged the need for Sri Lanka to revisit its labour laws and regulations. Since the labour market was forced to accept work from home (WFH), accommodating flexibility in labour legislation and other legislation governing the workplace is essential. Accommodating flexible working practices is important, especially for women, as this allows them to balance their family and work responsibilities, thus retaining them in the labour force. With prolonged school closures, there is currently no way of improving the students’ soft skills as extra-curricular and co-curricular activities were halted. This will affect their employability in the future.

Commentary: Migration and Health

Dr Kolitha Wickramage

In the migration sector, future policy decisions should take into consideration factors such as the gender dimension of returnees and skills requirements of migrant workers as well. Psychosocial health and mental health are extremely important for the reintegration package since this is still an unmet agenda. Even though the overall vaccination process including vaccination for migrant workers in Sri Lanka is appreciable, the number of deaths and serious cases can be averted if a more systematic strategy such as those provided by WHO Sage recommendations were followed. The IPS State of the Economy report must be commended for recognising the need to address psychosocial issues of migrants, in addition to their social and economic issues.



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SriLankan Airlines Alerts Customers to Social Media Scams

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18 March 2026; Colombo – SriLankan Airlines wishes to alert customers to social media scams circulating on Facebook, WhatsApp and other platforms, often sent from both known and unknown contacts, featuring fake offers that misuse the SriLankan Airlines name, logo and brand.

 

SriLankan Airlines will never request payments, OTPs, credit card details, bank information or any other financial details via social media channels.

 

Customers are advised to always verify that any promotional offer is linked to the airline’s official website, www.srilankan.com, or shared through the verified social media accounts of SriLankan Airlines, as scammers often use fake links with unusual characters or spellings, or impersonate the airline through fake social media accounts.

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JSL & Fentons Joint Venture to Construct Double Circuit Transmission Line from Mannar Grid Substation to Mullikulam Collection Grid Substation

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Approval has been granted at the Cabinet meeting held on 03-02-2025 to implement the formal procurement procedure to select a contractor for the construction of a 28 km long double circuit transmission line with the capacity of 220 kW, from Mannar Grid Substation to Mullikulam Collection Grid Substation under the Lot B of the Mullikulam Wind Power Transmission Project.

Bids have been invited following the International Competitive Procurement Procedure and five (5) bids have been received.

Accordingly, based on the recommendations submitted by the High-Level Standing Procurement Committee after evaluating the aforementioned bids, the Cabinet of Ministers has approved the resolution furnished by the Minister of Power and Energy to award the contract to the JSL & Fentons Joint Venture – Intend (Jyoti Structure Limited, India and Hayleys Fentons
Limited, Sri Lanka), substantially responsive minimum bidder, for an equal amount of Sri Lankan Rs. 2,269.18 million (without VAT).

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Fuel crunch forces midweek shutdown; courts told to show leniency

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Industry observers say some firms may be compelled to seek loan moratoria if the disruption linked to the oil crisis continues for another month

Economic pressure likely to push already-strained businesses into a liquidity crunch

By Sanath Nanayakkare

Sri Lanka is slowing to a midweek halt as a deepening fuel shortage has compelled the government to suspend most public sector operations every Wednesday, while courts have been advised to take a lenient view of attendance requirements amid transportation difficulties caused by fuel rationing.

The directive, issued by the Commissioner General of Essential Services, suspends most state functions one day a week until further notice in an attempt to conserve scarce fuel reserves. Authorities have also urged the private sector to adopt a similar arrangement.

Officials say the measure is aimed at reducing commuter traffic into major cities, particularly Colombo, where thousands of public servants travel daily from suburban areas.

Explaining the decision to select Wednesday, officials said declaring Friday a holiday could have effectively denied the public access to government services for three consecutive days when combined with the weekend.

However, the development underscores the fragility of Sri Lanka’s economic recovery as households continue to grapple with rising prices of essential goods.

The impact is already visible on the streets. Long queues have formed outside fuel stations while public buses have been seen overcrowded, with passengers clinging to footboards. Many commuters were also seen attempting to secure rides through the ride-hailing platforms Uber and PickMe, where drivers were demanding higher fares as demand surged.

Recognising these difficulties, the Judicial Service Commission (JSC) has issued a circular instructing judges to take transportation constraints caused by fuel rationing into consideration when making legal determinations.

Judges have been advised to consider the possibility that lawyers, litigants, witnesses and even suspects may be unable to attend court due to limited fuel availability.

While court proceedings are expected to continue, judicial officers have been asked to assess such situations on a case-by-case basis.

The JSC has also directed courts to make greater use of virtual platforms whenever possible. This is expected to apply particularly to proceedings such as extending remand orders, thereby avoiding the need to transport prisoners physically to court.

Authorities believe that conducting such hearings online could significantly reduce fuel consumption associated with prison transport. The temporary measures will remain in effect until further notice.

Meanwhile, officials say special fuel allocations may be considered for critical sectors including tourism, the Colombo Port, agriculture, health services, the plantation industry and public transportation in order to sustain essential services and economic activity.

However, the broader economic outlook remains uncertain. Business leaders warn that companies already burdened with higher taxes, rising operational costs and thin margins could face severe liquidity pressures if global oil prices remain elevated.

Industry observers say some firms may be compelled to seek loan moratoria if the disruption linked to the conflict involving Iran continues for another month.

Public concern has also been heightened by recent comments from Iranian officials indicating that Tehran has not sought a ceasefire in the ongoing conflict.

For President Anura Kumara Dissanayake, the unfolding fuel shortage is emerging as one of the most serious challenges facing his administration. Although the government has been holding internal consultations, critics say an all-party conference has yet to be convened to formulate a unified national response to the crisis.

Within business circles and sections of the public, questions are increasingly being raised about whether the government possesses the institutional capacity and experience required to manage a prolonged energy shock.

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