Business
Women’s increasing vulnerability and COVID-19
Sri Lanka’s Gender-based Employment Segregation
By Sunimalee Madurawala
Although COVID-19 may be gender-blind, it has created a crisis that has disproportionately affected women across the globe. The economic impact of the pandemic is mostly channelled through the labour market. Estimates show that women’s jobs are 1.8 times more vulnerable than men’s jobs, and while women make up 39% of global employment, they account for 54% of overall job losses. While many factors affect the vulnerability of women’s employment during the pandemic, existing gender gaps in the labour market, women’s employment share in highly-affected sectors, the ability to telecommute and the amount of unpaid care work carried out by women have been identified as the main determinants. In this context, this blog examines women’s vulnerability in the Sri Lankan labour market due to the sector they are employed in. It also looks at gender-based employment segregation – a key factor behind women’s overrepresentation in certain industries and underrepresentation in others – and proposes policy measures to address this imbalance.
Impact of COVID-19 on Employed Women in Sri Lanka
A comparison of labour market figures and indicators for Sri Lanka for the fourth quarters of 2019 and 2020 shows a severe impact on women (Figure 1). While the absolute number of employed men has increased by 38,938, the number of employed females has decreased by 189,148. The number of economically inactive persons has increased between the years. Females account for 64% of that increase in economically inactive persons. The labour force participation (LFP) rates for both sexes have decreased significantly but the fall is more prominent for women. The unemployment rate has increased for both sexes during the period, whereas the increase for men is marginally higher than that for females attesting to the lowered LFP of women.
The Sector Matters
The greater impact on employed women due to the pandemic is linked directly with the sectors they are employed in. Calculations of the author on women’s employment in Sri Lanka based on an assessment by the International Labour Organization indicate that their employment share is high in both low-risk and high-risk economic sectors (Figure 2).
Manufacturing (including the sub-sector of textile manufacturing), accommodation and food services, and wholesale and retail are high-risk sectors with relatively high female employment shares. Female representation is relatively high in some medium-high risk and medium risks sectors such as ‘arts, entertainment, recreation, and other services’ and ‘financial and insurance activities’, respectively, as well. Even though health is a low-risk sector, women employed in the health sector face a higher risk of contagion.
Gender-based Employment Segregation – a Cause for Women’s Employment Vulnerability?
Gender-based employment segregation – ‘the unequal distribution of men and women across and within job types’, is often the major reason for women’s (or men’s) over-representation in certain sectors. In most cases, especially for females, their choice of employment is linked with the traditional gender roles they play in society (i.e. direct and indirect care responsibilities such as caring for children, the elderly, and the sick, cleaning, cooking, shopping, and fetching water and fuel). For example, in Sri Lanka, the female share in several frontline occupations is high (i.e., health professionals, health-related professionals, and care workers). These occupations are directly linked with women’s traditional gender roles.
Gender-based employment segregation creates unfavourable labour market conditions such as gender gaps in wages, job quality and employment trajectories. Demand-side factors, as well as supply-side factors, limit women’s choice in selecting an employment sector, thus causing employment segregation. Gender gaps in skills and qualifications, domestic and care responsibilities, safety (i.e. harassment at workplaces and when using public transport) issues, and lack of role models and networks are some important supply-side factors. Gender biases in recruitment, evaluation and promotion processes, employers’ perceptions of women employees (where employers perceive women employees as more suitable for certain types of jobs) and features of the workplace culture are important demand-side factors.
Way Forward
Both training in hard skills and soft skills would increase women’s chances of securing employment in fields traditionally dominated by males. Specific interventions that reduce and redistribute women’s domestic and care responsibilities (i.e. expanding access to key infrastructure for care and investing in labour-saving technology, and redistributing care responsibilities between men and women within households and between households and state and other institutions) would lessen the burden of care responsibilities borne by women. This would create an enabling environment for women to participate in labour market activities and to expand the array of employment options available for them.
Strengthening the legal framework and law enforcement mechanisms is important to ensure the safety of working women both at the workplace and when travelling to work. Furthermore, promoting female role models who have succeeded in traditionally male-dominated sectors would inspire women to choose such careers. In addition, establishing workplace cultures that practice gender-blind recruitment, evaluation, and promotion processes are needed to curtail demand-side factors of gender-based employment segregation.
* This blog is based on the comprehensive chapter on “The COVID-19 Pandemic and Employed Women: Ensuring Gender Equality beyond the Pandemic” in IPS’ forthcoming annual flagship publication ‘Sri Lanka: The State of Economy 2021’.
Link to blog: https://www.ips.lk/talkingeconomics/2021/09/07/sri-lankas-gender-based-employment-segregation-does-it-increase-womens-vulnerability-amidst-covid-19/
Sunimalee Madurawala is a Research Economist at IPS. Her research interests include health economics, gender and population studies. Sunimalee holds a BA (Economics Special) with First Class Honours and a Masters in Economics (MEcon) from the University of Colombo, Sri Lanka. (Talk to Sunimalee – sunimalee@ips.lk)
Business
Wealth Trust Securities to raise Rs. 500.8 million via IPO
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Company chairman Senaka Weerasooria told journalists in Colombo that the IPO is not merely a capital-raising exercise, but a reinforcement of the disciplined structure that has defined the company since its inception.
He noted that WTS enters the public market with what is already one of the most robust capital bases in the industry, and with “absolute confidence that investors are joining a journey that has consistently returned value.”
Weerasooria said the capital infusion will further solidify WTS’s ability to absorb volatility, particularly amid cyclical movements in Treasury yields.
Despite maintaining a conservative trading outlook, the company has managed to average a 31% ROE over the past twelve years — a figure management repeatedly highlighted as evidence of resilience across both tightening and loosening rate cycles.
Managing Director and CEO Romesh Gomez said that in recent months the direction of policy rates and market liquidity has begun shifting favourably, creating clear value-accretion opportunities for disciplined portfolio expansion. With additional capital, he noted, WTS has greater room to capture advantageous auction positions, broaden secondary market activity and align its investment scale to emerging market windows.
Gomez acknowledged that FY25 reflected compressed performance due to systemic realignment, with revenue at Rs. 4.6 billion and PAT at Rs. 1.2 billion. However, he pointed out that profit sustainability, even through a difficult cycle, speaks to strong operational controls. The A- rating with a Positive outlook continues to stand, reinforcing the company’s position as a stable counterparty in a specialised sector.
Asia Securities Advisors, managing the IPO, pointed out that the offer price of Rs. 7 presents meaningful upside when benchmarked against underlying valuation metrics. The move into the listed environment, they noted, enhances governance visibility — a point increasingly valued among institutional investors participating in the Government securities market.
By Ifham Nizam
Business
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BoardPAC’s operations, spanning over 40 countries, were assessed against the ISO 14064 – 1:2018 standard, and the company’s organization-level Greenhouse Gas (GHG) emissions were successfully offset, reflecting its ongoing commitment to reducing its environmental impact.
Business
Uber marks 10 years in Sri Lanka: Moving People, Powering Livelihoods, Impacting Communities
Uber today marked ten years of operations in Sri Lanka, a decade in which the platform has reshaped how people commute, and how thousands of Sri Lankans earn a livelihood. Over the past decade, ride-hailing has become one of the most transformative shifts in Sri Lanka’s urban mobility landscape, providing safe, reliable and affordable transport at scale.
Chathuranga Abeysinghe, Deputy Minister for Entrepreneurship, Ministry of Industries and Entrepreneurship Development, Government of Sri Lanka, graced the milestone event as the Chief Guest. U.S. Ambassador Julie Chung attended as the Guest of Honor, joined by Akanksha Singh, Head – South Asia Markets, Uber, and Kaushalya Gunaratne, Country Manager – Mobility, Uber Sri Lanka.
As per the 2024 Sri Lanka Economic Impact Report, compiled by global policy research firm – Public First, Uber and Uber Eats together generated over LKR 160 billion in economic activity in Sri Lanka within a single year. Since its entry in Sri Lanka in 2015, Uber rides have covered over 1.15 billion kilometers – equivalent to nearly 3000 trips from Earth to the moon! Over 320,000 Sri Lankans have earned through the platform as drivers.
Uber has also supported the tourism ecosystem, enabling more than 700,000 airport trips, connecting visitors seamlessly to their destinations. Over the last year, we’ve further intensified our service in the Western and Central provinces and expanded our offerings in the Southern and Northern provinces – bringing its services closer to more communities across the country. Uber has emerged as one of the most preferred ride-hailing platforms across the island, offering affordable, reliable, and safer rides at different price points.
Deputy Minister for Entrepreneurship, Ministry of Industries and Entrepreneurship Development, Government of Sri Lanka, Chathuranga Abeysinghe, said, “Over the past decade, Uber has become part of the fabric of daily life in Sri Lanka – not only by helping people get where they need to go, but by enabling thousands to earn an income with dignity and flexibility.
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