Direct Request (CEACR) - adopted 2025, published 114th ILC session (2026)

Employment Policy Convention, 1964 (No. 122) - Sri Lanka (Ratification: 2016)

Articles 1 and 2 of the Convention. Formulation and implementation of an active employment policy. The Government informs that the Strategy “Vision 2025” has been discontinued and the National Human Rights Action Plan has been terminated. In addition, the National Human Resources and Employment Policy, adopted in 2013, has been in the process of revision with the support of the National Human Resources Development Council. Furthermore, a new Decent Work Country Programme for the period 2025–2029 is in the process of formulation. In this context, the Government states that in the current situation, Sri Lanka does not have a distinct employment policy, and the country has been addressing the principles of Convention No. 122 through various labour market initiatives. The Government also indicates that the Ministry of Labour and Foreign Employment is in the process of amending existing labour laws, and the proposed comprehensive Employment Act aims to establish uniform terms and conditions of employment, to address gender equality and to prevent discrimination against vulnerable groups, in particular women. In addition, the Government refers to amendments to the Sri Lanka Bureau of Foreign Employment Act, aiming to streamline processes and protect migrant workers from abuses and exploitation. ​The Committee also notes the information about the implementation of the Revised National Policy and Action Plan on Migration for Employment (2023–2027) with a focus on decent and productive employment and migrant workers’ rights. ​In response to the need for a properly developed social protection system for the labour force, the Committee notes that the Ministry of Labour and Foreign Employment, with the technical support of the ILO, is in the process of developing and executing a comprehensive national social protection programme covering the unemployment benefits, workplace injuries and maternity benefits for the workforce.

The Committee notes with concern the Government’s statement that currently no distinct employment policy exists, following the discontinuation of ’Vision 2025’. The Committee recalls that Convention No. 122 requires the Government to declare and pursue an active policy as a major goal. In the context of the multidimensional economic crisis facing the country, the absence of a coordinated employment policy framework risks deprioritizing employment generation in favour of fiscal consolidation. The Committee requests the Government to indicate how, in the absence of a stand-alone policy, it ensures that full, productive and freely chosen employment remains a central objective of its macroeconomic and stabilization measures.

In addition, noting that the Government does not provide information in reply to its previous comments,the Committee reiterates its request to the Government to provide updated detailed information on the nature and impact of the measures adopted within the framework of the revised Employment Policy for Sri Lanka (NHREP), the development strategy “Vision 2025”, and the National Human Rights Action Plan (2017–2020) (NHRAP), as well as of all other active labour market measures relevant to the creation of opportunities for decent, productive and sustainable employment. It also requests the Government to provide information on the development, implementation and impact of specific measures undertaken within the framework of the ILO Decent Work Country Programme for Sri Lanka 2018–2022, extended to 2024. The Committee further reiterates its request to the Government to provide information on the status of the latest revision of the NHREP, as well as of the Action Plan formulated in the framework of the NHREP and to provide copies once they have been adopted.

Article 2. Labour market statistics and information. The Government informs that the Ministry of Labour and Foreign Employment has taken initiatives to implement a National Labour Market Information System, which will serve as a comprehensive platform to gather, analyse and disseminate information about the labour market in the country. The system will address gaps in labour market data, including employment trends and skill requirements. In addition, the Department of Census and Statistics is responsible for conducting labour force surveys and maintaining comprehensive data which will support evidence-based policymaking through insightful reports and analysis. ​

The Committee notes with interest the detailed statistical information about the employment and unemployment trends. In this context, the Committee notes that the labour force participation rate in Sri Lanka shows a gradual decline in participation, and it was 49.8 per cent in 2022 in comparison to 50.6 per cent in 2020. The male participation was 70.5 per cent in 2022 in comparison to 71.09 per cent in 2020, while female participation has slightly improved, and it was 32.5 per cent in 2022 in comparison to 32.0 per cent in 2020. The employment rate for both sexes has remained relatively high, 95.3 per cent in 2022, indicating a stable job market despite fluctuations in participation. The distribution of employees by employment status in 2022 indicates a stable presence in the private sector (42.9 per cent), while public sector employment has fluctuated (15.1 per cent). The service sector has seen consistent growth, from 46.0 per cent in 2020 to 47.0 per cent in 2022, reflecting the economic structure of Sri Lanka. With regard to employment by occupation, the Committee notes that the employed population in Sri Lanka is distributed across various occupations, with notable trends in managerial and service roles.​ The data indicates a shift in employment patterns, particularly in service and sales occupations (11.1 per cent in 2022 in comparison to 9.5 per cent in 2020). The overall unemployment rate decreased from 5.5 per cent in 2020 to 4.7 per cent in 2022 (male – 3.7 per cent and female – 6.5 per cent), with significant improvements in youth unemployment, in particular among 15–24 years it decreased from 31.7 per cent in 2020 to 22.7 per cent in 2022 and unemployment among 25–29 years decreased from 18.1 per cent in 2020 to 11.7 per cent in 2022. The underemployment rates in Sri Lanka reflect the challenges faced by individuals with varying levels of education, and the data indicates that those with lower educational qualifications experience higher rates of underemployment. The data also shows that in 2022, the underemployment rate was 4.1 per cent in agriculture, 2.8 per cent in industry and 1.8 per cent in services. The Committee requests the Government to continue to provide updated, detailed information on the nature and impact of measures taken to improve the national labour market information system. The Committee also requests the Government to continue to provide up-to-date information, including statistical data disaggregated by sex and age, on employment, unemployment and visible underemployment trends.

Contribution of the employment service to employment promotion. The Government informs that the Department of Manpower and Employment (DME) has implemented various measures to enhance the capacity and quality of employment services and to promote job placements. These initiatives include: (i) the establishment of a web portal as a platform that facilitates job placements for both jobseekers and employers; (ii) the organization of regular physical and virtual job fairs to connect jobseekers with potential employers; and (iii) the introduction of online career guidance services and psychometric tests for persons seeking parallel support alongside career guidance. In addition, the DME has deployed over 500 divisional-level staff to provide comprehensive employment services nationwide, including in rural areas. The Committee notes the statistical information about the measures implemented by the DME in the period 2019–2022. In 2022, these measures include 59,758 jobseeker registrations, 37,151 job referrals, 12,922 training referrals, 9,606 job placements and 2,969 self-employment initiations. The Committee requests the Government to continue to provide updated detailed information on the measures adopted to improve the capacity and quality of employment placement and guidance services and increase the coverage of the network of employment offices throughout the country, including in rural areas, as well as information disaggregated by age and sex on the impact of the measures implemented.

Education and training. The Committee notes that the Government has undertaken numerous strategic initiatives to enhance the quality, relevance, and accessibility of technical and vocational education and training (TVET). These efforts aim to align vocational training with national development goals, labour market demands, and the Sustainable Development Goals (SDGs). The Government informs that the Tertiary and Vocational Education Commission (TVEC) has drafted the Development Plan for the TVET sector 2023, based on the 2018 National Policy prepared by the National Education Commission (NEC) and incorporating 73 policies across 9 major areas. The DP is focused on widening access to TVET, improving labour market relevance and enhancing training quality. The Committee also notes the intention of the Government to implement the Second Skills Sector Enhancement Programme under the National Development Plan, aiming to increase the number of youth and adults with job-relevant qualifications and skills. The key outputs of the Programme include skills integration in secondary education (grades 10–12); industry engagement, governance and management of major public TVET providers and financing reforms. The Committee further notes the information provided by the Government about other significant efforts which include: registration with the TVEC of previously unregistered institutions; special programs empowering women, such as upgrades to beauty and apparel courses; development of new qualifications such as “Early Childhood Education” and “Special Needs Care”; NVQ certification through Recognition of Prior Learning (RPL) for experienced workers, including returnee migrants; accreditation of training institutes for training of persons with disabilities; creation of e-learning quality standards and the launch of the Skills Passport, a digital record of qualifications and work history. The Committee requests the Government to provide detailed information on the measures adopted under the Development Plan for the TVET and the Second Skills Sector Enhancement Programmeand their impact on access to quality jobs and lasting employment. The Committee reiterates its request to the Government to provide information on the nature and impact of measures adopted to improve the employability of groups in disadvantaged situations.

Micro, small and medium enterprises (MSMEs). The Government refers to a study prepared by the ILO on the impact of multiple crises on Sri Lanka’s MSMEs. This study shows that the COVID-19 pandemic and economic crises disrupted the operations of 80–89 per cent of MSMEs in the tourism, manufacturing, construction, transport, trade, and other services, which account for over 55 per cent of GDP. In addition, MSME employment fell by almost 20 per cent, and 42 per cent of surviving MSMEs face the risk of failure within a year. The Government also refers to a Labour Market Recovery and Transformation Strategy, developed through Government-ILO collaboration using stakeholder dialogue and data from MSME assessments. This Strategy focuses on interventions in three areas: job creation, skills enhancement and institutional reform. The Government further informs that the Small Enterprises Development Division is working to promote entrepreneurship and upgrade existing businesses, and to provide training, market access, tech support, certification, and financial literacy. The Committee further notes that the Small Enterprises Development 2022 Action Plan aims at fostering entrepreneurial growth, encompassing the establishment of 3,445 new businesses and support of 20,670 existing businesses. According to the update on the status of the respective goals, as of June 2022, 1,164 new businesses started and 4,195 existing businesses developed. In reply to the Committee’s previous comments, the Government informs that no specific measures have been taken to strengthen the resilience of MSMEs in vulnerable areas of the country to natural disasters, as no severe weather or climate-related disasters have occurred since 2016. The Committee notes with concern the high risk of failure for surviving MSMEs (42 per cent) identified in the ILO study. Recalling that an enabling environment is crucial for the sustainability of enterprises, the Committee requests the Government to provide specific information on the impact of the “Labour Market Recovery and Transformation Strategy” in preventing these business failures and preserving jobs. Please provide statistical information not only on business creation but also on business survival rates and the quality of the jobs created (e.g. regarding social security coverage).

Furthermore, regarding the resilience of MSMEs to natural disasters, the Committee recalls that employment policy under the Convention must be preventive and forward-looking. Given Sri Lanka’s vulnerability to climate risks, the Committee requests the Government to indicate what measures are being prepared or envisaged to strengthen the resilience of MSMEs against future climate-related shocks, rather than waiting for a disaster to occur.

Finally, the Committee requests the Government to continue to provide detailed updated information on the measures taken to promote and support MSMEs for job creation, as well as on their impact, including statistical information on the number and type of enterprises established and the number of jobs created by such enterprises.

Informal economy. The Government refers to the Labour Force Annual Report 2022, which shows that the informal sector plays a significant role in Sri Lanka’s economy, contributing to a large portion of total employment (57.4 per cent). The survey results also reveal that of the total number of workers employed in agriculture, 87.8 per cent are in informal employment. In addition, 62 per cent of men and 48.6 per cent of women are working in the informal sector. The Government also informs about the programme “Dignity to Work” which aims to integrate informal sector workers in the formal economy through self-regulatory bodies. Recalling that facilitating the transition to formality requires an appropriate legislative and regulatory framework and effective enforcement by public authorities, the Committee requests the Government to explain how “self-regulatory” mechanisms ensure the effective extension of labour rights and social protection to informal workers. It further requests the Government to indicate whether it plans to adopt a comprehensive national strategy to facilitate the transition to formality, as guided by the Transition from the Informal to the Formal Economy Recommendation, 2015 (No. 204), encompassing incentives for compliance, extension of statutory social protection, and simplified registration procedures. Please continue to provide information on the size and composition of the informal economy.

Ethnic minorities. In reply to the Committee’s previous comments, the Government indicates that it does not collect employment data by ethnic minority and provides information about the distribution of the employed population by district, since many districts are primarily occupied by a particular ethnicity, except Colombo, which is ethnically diverse. In this context, the Committee notes that in 2022, the highest proportion of employees is in Jaffna (68.7 per cent), followed by Kilinochchi (65.4 per cent) and Colombo (65.4 per cent). The highest self-employed rates are in Mannar (52.3 per cent own account), Anuradhapura (47.3 per cent) and Badulla (39.7 per cent). In addition, the Government states that discrimination based on ethnicity is not permitted in the country and refers to its commitment to strengthen the legal framework against discrimination through a provision in the Employment Act which prohibits employment discrimination based on race, religion, language, caste, and other personal characteristics. The Government also informs that enterprises within the Export Processing Zones (EPZs) are taking proactive steps to promote diversity and to eliminate discrimination based on race, ethnicity, religion, and other factors. The measures include requesting data on the employment status of ethnic minorities; using all three national languages (Sinhala, Tamil, English) in official communications to ensure inclusivity and complying with UN Global Compact principles and related international labour standards, as supported by the Board of Investment (BOI). The Government further indicates that enterprises are now required to submit statistical data on ethnic minority employment, which provides a basis for implementing targeted measures to improve the positions of ethnic minorities within EPZs. The Committee requests the Government to continue to provide updated, detailed information on measures taken or envisaged to improve the position of ethnic minorities in the labour market. The Committee recalls that accurate statistical data disaggregated by ethnicity is essential to determine if specific groups face direct or indirect discrimination in access to employment. It encourages the Government to initiate a dialogue with the social partners and representatives of ethnic minorities on the collection of such data.

Young persons. The Government informs that the National Youth Services Council (NYSC) implemented several key initiatives in 2020, aligned with the National Youth Policy (NYP) to enhance skills development and youth employment in various sectors. These initiatives include the launch of the Management Information System (MIS) to connect TVET-trained youth with employers across sectors; skills and language (Japanese, Korean, German, Russian) training for overseas job markets including Japan, Israel, Republic of Korea, Europe, and Gulf countries; collaborations with corporate and blue-chip companies in the Western Province; four online tools to help youth identify interests and the launch of the ”Hope for SL” programme to connect young entrepreneurs with finance, mentorship, and industry networks. The Committee notes that in 2021, 11,824 young persons were registered in TVET programmes; 10,410 completed them, and 5,564 were employed. The Committee also notes that in 2022, the participation rate in the labour force of young persons aged 15–19 was 11.2 per cent and 51.5 per cent of young persons aged 20–24. The government informs that the Ministry of Youth and Sports has undertaken steps to revise the National Youth Policy. The Committee, however, notes that the Government does not provide information disaggregated by sex, age and region in reply to its previous comments. The Committee, therefore, reiterates its request to the Government to provide detailed updated information, disaggregated by sex, age and region, on the scope, nature and impact of the measures adopted within the framework of the Employment Policy for Sri Lanka (NHREP) and the National Youth Policy, as well as of other measures adopted to promote opportunities for decent and lasting employment for young persons. Please also provide data on the rate of young persons not in employment, education or training (NEET), as this provides a more accurate picture of youth labour market exclusion than unemployment rates alone

Women. The Committee notes the concern expressed by CEDAW in its concluding observations of 28 February 2025 about the persistent and severe gender gap in labour force participation, where the participation of women remains critically low at 31.9 per cent, compared with 70.4 per cent for men, and the concentration of women in the informal economy (60 per cent of women in the labour force)(CEDAW/C/LKA/CO/9, para. 41). The Committee also notes the gap in the average monthly gross salary, which in 2022 was 43,556 Sri Lanka rupees for women, compared to 48,546 rupees for men. In this context, the Government informs about initiatives to increase women’s labour force participation in Export Processing Zones (EPZs). These initiatives include the establishment of day care centres (créche) and pre-schools within EPZs, provision of similar training and equal salaries for male and female employees within a given category. The Government also informs that in line with the Equal Remuneration Convention, 1951 (No.100), it has incorporated provisions in the Employment Act related to equal payment for equal value of work regardless of sex. The Government further informs that the National Institute of Labour Studies, in collaboration with the technical assistance of the ILO, has initiated a wage gap survey which will be used for the formulation of the wage policies in the country. The Committee draws the Government’s attention to the 2020 General Survey, which highlights that unpaid care work is a primary barrier to women’s participation. It requests the Government to report on specific measures taken to recognize, reduce, and redistribute unpaid care work (such as investments in childcare infrastructure) to facilitate women’s transition into the formal labour market. The Committee also requests the Government to continue providing updated detailed information on the impact of the measures adopted to increase women’s labour force participation rate and to reduce the gender pay gap, including updated statistical information, disaggregated by sex, age, occupation, sector of activity and professional category.

Persons with disabilities. The Government indicates that the Department of Social Services (DSS) implements various vocational training and support programs to enhance employment opportunities for persons with disabilities. The Government also informs that there are nine vocational training institutes (VTIs) spread across six administrative districts, which are dedicated to facilitate the access of youth with disabilities to vocational training. The Committee notes that in the period 2020–2022, 475 students were enrolled in the VTIs, pursuing 26 vocational training courses aligned with their preferences and eligibility. The Government also informs about the operation of Child Guidance Centres under the auspices of the DSS. These centres execute programmes tailored to mitigate physical and mental challenges experienced by children with disabilities. The DSS has established two Child Guidance Centres in the Colombo and Hambantota administrative districts, and in the period 2020–22, 68 were enrolled as service recipients. The Government also indicates that the Board of Investment is actively involved in a technical cooperation project aimed at promoting employment support for persons with disabilities through collaboration between the public and private sectors. The Committee requests the Government to continue providing detailed and updated information on the scope and the nature of the measures adopted to promote the access of persons with disabilities to quality education and job opportunities in the regular labour market. The Committee also requests the Government to provide information on the impact of such measures, including statistical information on the total number of participants, disaggregated by age, sex and region.

Migrant workers. The Government refers to the implementation of the Revised National Policy and Action Plan on Migration for Employment for the period 2023–27, with a focus on the promotion of decent and productive employment and protection of migrant workers’ rights. The Government also informs that the Sri Lanka Foreign Employment Bureau (SLBFE) has taken measures to protect Sri Lankan migrant workers from forced labour and has suspended the services of foreign agents involved in irregularities in the recruitment of Sri Lankan nationals. The Committee notes that the measures include awareness-raising activities, pre-departure training, complaint handling mechanisms, consular assistance and a free insurance scheme for migrant workers registered with the SLBFE. The Government further informs that the Ministry of Labour and Foreign Employment has signed memoranda of understanding (MoUs) with some countries to ensure the rights of the Sri Lankan migrant workers. The Committee requests the Government to continue to provide updated detailed information on the impact of the measures undertaken to ensure that Sri Lankan nationals recruited to work abroad are protected from practices that might increase their vulnerability to forced labour. The Committee also requests the Government to provide information on measures implemented under theRevised National Policy and Action Plan on Migration for Employment (2023–2027) to enhance access to decent jobs and employment-related benefits and protections for both female and male migrant workers.

Article 3. Consultations with the social partners. The Government informs that the National Human Resources Development Council (NHRDC) is revising the National Human Resources Development Policy through consultations with various stakeholders at national and regional levels. The revised policy will be presented to the National Labour Advisory Council for further comments. The Committee underscores that Article 3 requires consultations which should in principle be held at the early stages of policy formulation. It requests the Government to ensure that social partners are actively involved in the drafting process of the new employment policy, rather than solely commenting on a finalized draft”. The Committee requests the Government to continue to provide detailed updated information on the manner in which the experience and views of the social partners have been taken into account in the formulation and implementation of employment policy measures, and the outcome of this process. The Committee reiterates its requests to the Government to indicate the nature and scope of consultations held with representatives of the persons affected by the measures taken, such as women, young people, persons with disabilities, rural workers, ethnic minorities, and other concerned groups, in relation to the formulation and implementation of active employment policies and programmes.

COVID-19 pandemic. Socioeconomic impact. Response and recovery measures. The Committee notes the profound negative impact of the COVID-19 pandemic on Sri Lanka’s economy and workforce in both formal and informal sectors. Significant job losses were observed, particularly in urban areas, due to economic contractions and mobility restrictions. The Government informs that the unemployment rate rose to 5.5 per cent in 2020, with a further increase to 5.7 per cent in the first quarter of 2021, and the economically active population was 8.6 million in 2019, with 64.5 per cent males and 35.5 per cent females. The Committee notes that the Government has introduced short and medium-term strategies to address the challenges posed by the pandemic, aiming to protect employment and ensure business sustainability. In this context, the Committee notes the Government assistance in the form of personal grants of 5,000 rupees per family and loans to businesses at lower interest rates. In addition, the employers were allowed to prorate payments based on hours worked due to business losses. Furthermore, a comprehensive integrated social security scheme was established, including unemployment benefits linked to reskilling. The Committee also notes the aim of the Government to create additional employment opportunities by positioning Sri Lanka as a health and education hub and to strengthen the social dialogue mechanisms at enterprise and sectoral levels to maintain industrial peace. In response to the pandemic, the Government also informs about the reform of labour laws to better address future crises and integrate new working norms. With regard to the importance of unemployment insurance, the Government has asked for technical assistance from the ILO to conduct actuarial studies, and it refers to its commitment to take actions based on the recommendations.