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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 Resumes Flights to Riyadh and Dubai

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09 March 2026; Colombo – SriLankan Airlines would like to inform passengers that it is resuming daily services to Riyadh tonight and Dubai tomorrow, while continuing to closely monitor the situation in the Middle East and prioritising the safety and wellbeing of its passengers and crew.

The following flights are scheduled to operate:

For more information please contact: 1979 (within Sri Lanka); +94 11 777 1979 (international); WhatsApp +94 74 444 1979 (chat only); your travel agent; visit www.srilankan.com; or follow us on social media.

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Oil prices jump above $100 for first time in four years

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Oil facilities in Tehran were hit by airstrikes at the weekend

Global oil prices have jumped above $100 (£75.11) a barrel for the first time since 2022 as the escalating US-Israeli war with Iran has fuelled fears of prolonged disruption to shipments through the Strait of Hormuz.

Iran on Sunday named Mojtaba Khamenei to succeed his father Ali Khamenei as Supreme Leader, signalling that a week into the conflict hardliners remain in charge of the country.

The US and Israel launched fresh waves of airstrikes across Iran over the weekend, hitting multiple targets including oil depots.

Major disruption to energy supplies from the region threatens to push up prices for consumers and businesses around the world.

Early on Monday in Asia, Brent crude was around 15.5% higher at $107.16, while Nymex light sweet was up by more than 17% at $106.77.

Stock markets in the Asia-Pacific region fell sharply in early trading on Monday, with Japan’s Nikkei 225 index down by more than 5% and the ASX 200 in Australia more than 3.5% lower.

Many in the markets predicted that oil would hit the $100 a barrel mark this week.

In the event it took about a minute to jump 10%, and then another 15 minutes to rise a further 10% in early Asian trading.

Last week the markets had been relatively relaxed about the seeming nightmare scenario for millions of barrels of crude and liquefied natural gas trapped in the Gulf, unable or unwilling to transit the Strait of Hormuz.

But the escalations over the weekend, alongside scenes of destruction of energy infrastructure both in Iran and across the Gulf, saw the markets take rapid fright.

The question now is where does this go? Some analysts argue that if the shutdown in the strait lasts until the end of March, we could see record oil prices above $150 a barrel.

The existing rise is likely to further increase petrol prices, and those of important derivative products such as jet fuel and vital precursors for fertilisers.

The physical supplies from the Gulf are mainly consumed in Asia.

Already however there are signs that Asian consumers are bidding up prices for US gas, with some tankers originally heading for Europe turning around in the mid-Atlantic.

US President Donald Trump responded to the jump in prices by saying that short term rises were a “small price to pay” for removing Iran’s nuclear threat.

His energy secretary told US broadcasters on Sunday that Israel, not the US, was targeting Iran’s energy infrastructure, amid some concern about rising domestic pump prices caused by the war.

(BBC)

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CMTA warns buyers of long-term costs hidden in reconditioned vehicle imports

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The Ceylon Motor Traders’ Association (CMTA) has issued a stark cautionary note to prospective vehicle buyers, warning that the initial price advantage of reconditioned imports often masks significant long-term financial risks.

By highlighting a “structural imbalance” in the current duty valuation system – which allows near-identical vehicles to be imported under a 15% automatic depreciation bracket – the CMTA argues that the lack of manufacturer-backed warranties and tropicalised specifications in the grey market could lead to a “reconditioned trap” for unsuspecting consumers. For the savvy buyer, the association suggests that the true cost of ownership is increasingly tilting the scales in favour of brand-new vehicles from authorised agents.

If two identical 2026 models are sitting on different lots, and one is significantly cheaper because it was technically “registered and de-registered” abroad, the frugal buyer’s instinct is to take the discount. But the CMTA argues that this 15% depreciation benefit – intended for genuine used cars – is being leveraged as a loophole for zero-mileage vehicles.

For the savvy buyer, this raises a fundamental question of transparency. If the entry price of a vehicle is built on a “procedural” technicality rather than actual wear and tear, where else is the transparency lacking? Does the lower price reflect a genuine saving passed to the consumer, or does it mask a lack of manufacturer-backed after-sales support?

When a buyer chooses an authorised agent, they are essentially purchasing an insurance policy against the unknown. With a five-year manufacturer warranty, the financial burden of a faulty transmission or a software glitch stays with the global giant that built the car, not the local owner. In an era where vehicles are increasingly “computers on wheels,” the technical specialised tools and genuine parts held by authorised agents are no longer a luxury – they are a necessity for longevity.

The CMTA’s perspective also invites the buyer to look at the “Big Picture.” Every time a vehicle is imported under an under-declared value or an artificial depreciation bracket, it isn’t just a loss for the Treasury; it is a blow to the country’s foreign exchange discipline.

“A savvy buyer today is more informed than ever. They realize that a “cheap” import with no service history and no tropicalised specifications may eventually become a “minus” on the balance sheet. Frequent repairs and lower resale value can quickly evaporate the initial few lakhs saved at the point of purchase. Ultimately, the choice between brand new and used is a choice between certainty and speculation,” the Association says.

The CMTA is advocating for a level playing field where duty is based on true transaction value. Until that day comes, the burden of due diligence rests on the consumer. To be a “savvy buyer” in 2026 means looking past the showroom shine and asking: Who stands behind this car if something goes wrong tomorrow?

In conclusion, CMTA says,” For those seeking long-term peace of mind, the “brand new” path – supported by a transparent duty structure and a solid warranty – remains the gold standard for steering Sri Lanka’s complex automotive landscape.”

Before signing the papers on a reconditioned vehicle, the CMTA suggests buyers evaluate the four “minus” factors against a “brand new” purchase:

By Sanath Nanayakkare

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