Business
Threads of Resilience: Is Sri Lanka’s apparel sector prepared to face Pathogen X?
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/
Business
Saudi Arabia deepens investment in Sri Lanka with USD 50 mn medical faculty
Saudi Arabia has reaffirmed its long-term commitment to Sri Lanka’s economic and social development with the inauguration of the USD 50 million Faculty of Medicine at Sabaragamuwa University, a flagship investment expected to strengthen higher education, healthcare capacity and human capital while reinforcing the growing bilateral partnership between the two countries.
The project, financed by the Saudi Fund for Development (SFD), was inaugurated on Saturday in the presence of Prime Minister and Minister of Higher Education Harini Amarasuriya, Saudi Ambassador to Sri Lanka Khalid Hamoud Al Kahtani, SFD Deputy Chief Executive Officer Eng. Faisal Al-Kahtani, senior government officials and representatives of both countries.
Addressing the ceremony, Prime Minister Dr. Harini Amarasuriya described the project as another milestone in the enduring partnership between Sri Lanka and Saudi Arabia, expressing appreciation for the Saudi Fund for Development’s continued support in expanding higher education and creating opportunities for future generations of Sri Lankan students.
The premier said the new Faculty of Medicine would help address the country’s growing demand for qualified medical professionals while strengthening the national healthcare system.
Ambassador Khalid Hamoud Al Kahtani said the inauguration reflected the “strong and enduring partnership” between the Kingdom of Saudi Arabia and Sri Lanka and underscored the two nations’ shared commitment to education, healthcare and sustainable development.
The Ambassador added:”This achievement stands as a testament to our shared commitment to advancing education, healthcare and sustainable development.”
The Ambassador paid tribute to the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and Mohammed bin Salman for their vision and continued support for international development initiatives that foster economic cooperation and sustainable growth across partner countries.
He also commended the Saudi Fund for Development for financing and implementing the project, describing the Faculty as an investment in human capital, knowledge and Sri Lanka’s future healthcare workforce.
“We are confident that this new Faculty will play a vital role in educating future generations of medical professionals, serving the people of Sri Lanka and further strengthening the close friendship and cooperation between our two countries,” the Ambassador said.
SFD Deputy CEO Eng. Faisal Al-Kahtani said the project represented far more than a new academic institution.
“It is an investment in people, knowledge and opportunity. For more than four decades, the Saudi Fund for Development has partnered Sri Lanka in projects that improve lives and support sustainable economic and social development,” he said.
The state-of-the-art Faculty of Medicine features modern laboratories, para-clinical teaching facilities and a comprehensive library, significantly expanding Sri Lanka’s medical education infrastructure.
Since 1981, the Saudi Fund for Development has provided approximately USD 422.7 million through 15 development loans supporting 12 major projects in education, healthcare, water supply, transport and energy, making Saudi Arabia one of Sri Lanka’s key development partners in long-term infrastructure and human resource development.
By Ifham Nizam
Business
Arpico Insurance welcomes finance professional Naresh Tillekeratne to Board
Arpico Insurance PLC, a renowned life insurance provider and a subsidiary of the blue-chip conglomerate Richard Pieris & Company PLC, has announced the appointment of Naresh Tillekeratne to its Board of Directors. This move further reinforces the Company’s commitment to operational excellence and stakeholder value as it embarks on its next phase of growth.
With a career spanning over 35 years in International Banking and Non-Bank Financial Institutions (NBFIs), Tillekeratne brings deep expertise in enterprise risk management, compliance, and corporate structuring. With over 15 years in C-level and senior management roles across Sri Lanka and the Middle East, he has forged a reputation for driving bottom-line efficiency and structural transformation.
Commenting on the appointment, Ramal Jasinghe, Chairman of Arpico Insurance PLC, stated “We are pleased to welcome Naresh Tillekeratne to our Board. He is a respected figure in the financial services landscape, recognised for his risk-management acumen and strategic foresight. As Arpico Insurance continues to scale and navigate complex and ever-evolving business and governance environments, his extensive cross-border experience will be invaluable in safeguarding stakeholder value and steering our sustainable growth trajectory.”
Prior to joining the board at Arpico Insurance PLC, Tillekeratne served as Chief Executive Officer of Assetline Finance PLC (previously Assetline Leasing Company Ltd), following a tenure as General Manager – Credit & Operations at AMW Capital Leasing and Finance PLC.
Jayalal Hewawasam, CEO of Arpico Insurance PLC, added “We are entering a dynamic phase of innovation and growth at Arpico Insurance, and strong corporate governance remains at the very heart of that journey. We are delighted to welcome Naresh Tillekeratne to our Board of Directors and the Company Management looks forward to working with him, and to harness his expertise in supporting our growth trajectory. We are confident that his proficiency in international banking, coupled with his acumen in enterprise risk management, will add tremendous depth to our leadership structure.”
Tillekeratne’s international exposure includes C-level responsibility at the Abu Dhabi Commercial Bank (UAE), where he engineered the restructuring of credit approval mechanisms and documentation controls to maximize portfolio returns. Prior to that, he completed a distinguished tenure spanning over two decades at Citibank NA Middle East, ascending to the level of Senior Vice President and Regional Head of Credit Risk Management for the Middle East, Egypt, and Pakistan. During his time with Citibank, he was also a key member of the specialized projects team tasked with advising and structuring financing for iconic state-backed development projects across Saudi Arabia, the UAE, Qatar, Egypt, and Bahrain.
Speaking on his new role, Tillekeratne noted “It is a privilege to join the Board of Arpico Insurance PLC, an institution anchored by the enduring 90-year legacy of the Richard Pieris Group. My primary focus will be to enhance our risk-governance architectures to ensure we meet our promises to policyholders while driving growth and innovation. I look forward to collaborating with the Board and the Senior Management to drive our strategic evolution with absolute integrity.”
Business
EFC new Chair reaffirms commitment to national employment policies and responsible business initiatives
The Employers’ Federation of Ceylon (EFC) recently concluded its 97th Annual General Meeting at the BMICH. At this general meeting, the Board of Trustees and Council Members representing different employer groups were appointed for the financial year 2026/27.
The outgoing Chairman, Dinesh Weerakkody expressed his appreciation to the Council, Members and the EFC Secretariat for the invaluable support extended to him throughout his tenure. Sanath Manatunge, Managing Director/CEO of the Commercial Bank of Ceylon PLC was appointed as the new EFC Chairman while Dinal Peiris, Chairman and Managing Director of the Lanka Aluminium Industries PLC Group was appointed as the Vice Chairman.
In his inaugural address, the new Chairman, while underlining the significance of the Federation, stated that, as the National Employers’ Organisation, the EFC will continue to contribute to labour law reforms that support future-ready businesses while driving responsible business initiatives. Manatunge who counts 36 years of experience having held very senior positions in the financial sector, presently serves on the Boards of Commercial Development Company PLC, and Commercial Bank of Maldives (Pvt) Ltd. as the Deputy Chairman. He is also the Chairman of the Sri Lanka Banks’ Association. Following his appointment as the new EFC Chair, the senior professional further emphasised the importance of engaging with the tripartite stakeholders to collaboratively advance shared objectives and strengthen Sri Lanka’s employment landscape.
Manatunge also represents key industry interests as a Member of the UNICEF Business Council, the Ceylon Chamber of Commerce, and the World Bank Group’s Private Sector Advisory Council. His regulatory and advisory contributions include serving as an Ex-Officio Member of the Stakeholder Engagement Committee of the Central Bank of Sri Lanka, as well as a Member of the Project Steering Committee (PSC) for the Central Bank’s Fraud Risk Management (FRM) System.
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