Limited fiscal space, growing service demands, and weak institutional dialogue mechanisms have placed public institutions under significant strain as Sri Lanka continues to navigate a challenging period of institutional reform and economic recovery, UN and Sri Lanka have said in a joint statement.

They have stressed that the public sector remains both a key driver of national progress and the primary interface between citizens and the state.

The joint statement was issued following a high-level panel discussion that brought together government officials, public sector unions, development partners, and civil society actors under the theme “Building Bridges, Delivering Better: Advancing Social Dialogue in the Public Sector.”

The event was held on Monday (23) in Colombo to mark United Nations Public Service Day.

The event, organized by the United Nations in partnership with the Ministry of Public Administration, Provincial Councils and Local Government highlighted the critical role of public service in economic recovery and social cohesion, and the transformative potential of social dialogue to prevent conflict, strengthen institutions, and improve service delivery.

A joint UN initiative titled “Social Dialogue for Peace and Crisis Prevention”, implemented by the International Labour Organization (ILO), the United Nations Population Fund (UNFPA), and the United Nations Educational, Scientific and Cultural Organization (UNESCO), seeks to strengthen inclusive, gender-responsive mechanisms for dialogue and dispute resolution in Sri Lanka’s public sector. The initiative is supported through the UN Sri Lanka SDG Fund, a pooled funding mechanism backed by Canada, the European Union, the United Kingdom, the United States, the UN Peacebuilding Fund, and the Joint SDG Fund.

UN Resident Coordinator in Sri Lanka, Marc-André Franche, opened the discussion by stressing the importance of rebuilding trust through inclusive dialogue: “Social dialogue is not only about minimizing industrial action. It is about building trust. When trust exists, services improve, morale rises, development gains are more sustainable and there is a greater cohesiveness present with society-at large”.

The panel explored how structured mechanisms such as workplace forums, sectoral platforms, and a national Public Sector Dialogue Forum, can provide alternate pathways for dispute prevention and resolution, reduce the risk of industrial action and unrest, improve working conditions, and ensure uninterrupted public service delivery.

Ms. Joni Simpson, ILO Country Director for Sri Lanka and the Maldives, reflected on the broader impact of the initiative: Social Dialogue is at the heart of social justice and decent work. Today we recognize the vital role of public officials in shaping resilient, gender-responsive and inclusive societies and economies. In Sri Lanka social dialogue is not just a principle – it is a tool for building trust, solving challenges and strengthening governance. The ILO stands committed to supporting public institutions, workers and employers as they engage in meaningful social dialogue that contributes to lasting peace and progress.”

Mr. Aloka Bandara, Secretary, Ministry of Public Administration, Provincial Councils and Local Government, stated: “I am happy to see that the culture of social dialogue is gaining deeper roots in Sri Lanka’s public sector. As we have started to work with key public sectors on operationalizing an alternate dispute prevention and resolution mechanism, the spirit of workplace cooperation is already bridging the relationship between management and workers. More efforts need to be dedicated to sustain this mechanism, so that we can continue pushing forward in enhancing public service delivery for all Sri Lankan citizens”.

Mr. Vajira Ellapola, Director General of the Employers’ Federation of Ceylon highlighted that social dialogue is a process where dialogue, consultation, negotiation, or exchange of information between employers, government and workers takes place: “It can relate to socio-economic policy, labour market or workplace related issues. It sets the stage and creates appropriate conditions for matters to be dealt with social partners through dialogue. Social dialogue should be regarded as processes rather than objectives. It represents ways of achieving consensus- driven objectives on labour market and social policy issues”.

The panel discussion also marked an important step in reaffirming and advancing public service as purposeful, professional, and people-centered, highlighting not only the challenges it faces but also the lived realities of public officials and the opportunities for innovation and reform.