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Threads of Resilience: Is Sri Lanka’s apparel sector prepared to face Pathogen X?

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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/



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Sri Lanka to build a new tourism workforce to project a stronger national voice

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SLITHM Chairman Dheera Hettiarachchi speaks at the press conference held in Colombo on April 24.

Specialised training programme set to begin

The Sri Lanka Institute of Tourism & Hotel Management (SLITHM) has launched a new initiative that could quietly reshape the country’s tourism industry – the National Tourist Interpreter Training Programme.

The idea, explained by SLITHM Chairman Dheera Hettiarachchi, is simple but important. Sri Lanka does not need to rely only on bigger tourist numbers or louder promotion. It needs to help visitors understand the country better.

“This is where the concept of a tourist interpreter comes in”, he said.

“Unlike traditional tour guides, who mainly explain and show places, interpreters are trained to go deeper. They connect the story behind what visitors see; linking history, culture, environment and local life. In a country like Sri Lanka, where ancient heritage, rich biodiversity and living communities are closely connected, this approach can make a real difference,” Hettiarachchi explained.

The programme itself will run for three months and focus more on field visits and practical learning rather than classroom teaching. It is open to academics and professionals with knowledge in areas such as history, culture, environment and research. Those who complete the course will receive a National Tourist Interpreter Licence from the Sri Lanka Tourism Development Authority, along with a digital badge.

With a course fee of around Rs. 250,000, this is not meant for mass entry. The target is a smaller, more specialised group. These interpreters are expected to work with destination management companies, serving high-end travellers who are looking for meaningful and informed experiences, not just sightseeing.

Speaking further, the SLITHM chairman said: “Globally, this trend is already visible; visitors increasingly expect detailed explanations about nature, conservation and local communities in the destinations they visit. They want to know not just what they are seeing, but why it matters. Sri Lanka has the natural and cultural depth to offer this kind of experience. What has been missing is the structured way of delivering that knowledge. That is where this initiative fits in.”

According to SLITHM, there is also a wider benefit. Visitors who understand a place tend to respect it more. This can reduce damage to sensitive sites and support conservation efforts, creating a better balance between tourism and the environment.

In this context, a new group of trained interpreters could gradually change how Sri Lanka is presented to the outside world. Instead of quick impressions shaped by social media, these interpreters can offer informed, thoughtful accounts of the country, combining knowledge with storytelling.

For a destination long promoted mainly for its beaches and scenery, this shift towards deeper storytelling may be both timely and necessary.

By Sanath Nanayakkare

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Savers squeezed by lower returns as liquidity surge eases borrowing costs

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Lower fixed deposit rates adversely affect retirees and fixed-income households that rely on bank interest to cover their daily expenses

A quiet but persistent strain is being felt by Sri Lanka’s savers, particularly retirees and fixed-income households who depend on bank interest to meet daily expenses such as groceries, medicine and utility bills. As deposit rates remain subdued, this segment continues to absorb the impact of a changing monetary environment with little visibility, even as broader conditions begin to ease for borrowers.

The latest economic indicators show that this pressure on savers is unfolding alongside a gradual shift towards lower lending rates and improved liquidity in the banking system.

At the centre of the transition is the Average Weighted Prime Lending Rate (AWPR), which declined to 9.63% in the week ending April 24, 2026, easing by 16 basis points from the previous week. This signals that borrowing costs are beginning to edge down, offering some relief to businesses and individuals reliant on credit.

In practical terms, housing loans, business overdrafts and working capital facilities could become marginally cheaper in the period ahead. However, as banks tend to adjust lending rates cautiously, the full benefit may take time to reach small businesses and ordinary consumers.

In contrast to the relief expected for borrowers, savers are likely to remain under pressure. Deposit rates have not shown a corresponding upward movement, meaning that interest income, a crucial lifeline for many households remains constrained in real terms, especially against the backdrop of rising living costs.

Monetary developments during the week also reflect a careful balancing act by policymakers. Reserve money declined, largely due to a reduction in currency in circulation, which stood at around Rs. 1.79 trillion by April 24. This suggests tighter control over physical cash in the system, possibly aimed at maintaining price stability and managing inflation expectations.

Yet, within the banking system itself, liquidity conditions have eased significantly. Total outstanding market liquidity rose sharply to a surplus of Rs. 199.17 billion, nearly doubling from the previous week. This increase indicates that banks have plenty of cash, which typically encourages lending and places downward pressure on interest rates.

For the public, the implications are mixed and unevenly distributed. Borrowers stand to gain gradually from lower interest rates, and businesses may find credit more accessible as liquidity improves. Consumers could also benefit from increased competition among banks to lend.

But for savers – a significant yet often overlooked segment – the story is different. With deposit returns remaining relatively low, their purchasing power continues to be tested, underscoring a growing divide in how monetary policy outcomes are experienced across society.

By Sanath Nanayakkare

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ComBank expands agency banking network to 26 locations

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One of the agency banking outlets in operation.

Commercial Bank of Ceylon has expanded its ‘ComBank Shakthi’ Agency Banking network to 26 strategic locations nationwide, adding 22 new outlets to the four pilot sites launched earlier.

The initiative partners with trusted local businesses or individuals who act as bank intermediaries, equipped with specialised POS devices running proprietary software for secure, real-time transactions. Customers can perform cash deposits, withdrawals, fund transfers, balance inquiries, and bill payments closer to home—reducing travel time and cost.

The expansion strengthens financial inclusion for underserved and unbanked communities, particularly in rural areas, and integrates closely with the Bank’s Agriculture and Micro Finance Units (AMFU), leveraging existing community trust. Agency outlets now complement Commercial Bank’s 272 traditional branches, bringing total physical access points to 298.

New locations include Katupotha, Oddusudan, Baduraliya, Vankalai, Akkaraipattu, and Lahugala, among others. The four pilot outlets remain at Tissamaharama, Hambantota, Siyambalanduwa, and Buttala.

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