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

Right to Organise and Collective Bargaining Convention, 1949 (No. 98) - Sri Lanka (Ratification: 1972)

The Committee notes the reply of the Government regarding the observations of the International Trade Union Confederation (ITUC) received on 1 September 2019, alleging acts of anti-union dismissals and union-busting.

Legislative developments. The Committee takes note of the observations of the ITUC and the International Transport Workers’ Federation (ITF), received on 27 September 2023, regarding the introduction of the Single Employment Bill, which seeks to repeal 13 existing labour laws, and the Government’s reply to these observations, received on 07 November 2023. The Committee understands that, since then, the Government has requested the technical assistance of the Office with respect to the elaboration of the Bill. The Committee hopes that, in consultation with the social partners and with the continued technical assistance of the Office, the Bill will take into account the present comments and ensure that the legislation is aligned with the Convention.The Committee requests the Government to provide information on the progress made towards the adoption of the Bill.

Article 1 of the Convention. Adequate protection against acts of anti-union discrimination. Effective and expeditious procedures. The Committee previously urged the Government to amend the Industrial Disputes Act to grant trade unions the right to bring anti-union discrimination cases directly before the courts and to ensure that such cases receive swift and responsive judicial consideration. The Committee welcomes the Government’s request for technical assistance in this regard. The Committee further notes the Government’s indication of intent to proceed, in consultation with relevant stakeholders, to grant trade unions direct recourse to the courts, subject to the recommendations of the dedicated subcommittee to which the issue was referred in May 2025 by the tripartite National Labour Advisory Committee (NLAC). The Government adds that the subcommittee has met once, and its recommendations are yet to be submitted to the NLAC. Encouraged by the indications of the Government, the Committee expresses the firm hope that, with the technical assistance from the Office, the Government will adopt, in the very near future, measures to ensure that trade unions have direct recourse to courts along with access to swift and responsive judicial remedy in cases involving anti-discrimination issues. The Committee requests the Government to provide information on any progress in this regard.

Article 4. Promotion of collective bargaining. Export processing zones (EPZs). The Committee previously requested the Government to intensify its efforts to promote collective bargaining in EPZs, and to provide information on: (i) instances in which section 10.3.2 of the Board of Investment (BOI) Manual was invoked with relief granted to unions; (ii) the number of collective agreements concluded in entities with both employees’ councils and trade unions; and (iii) the number of collective agreements in EPZs, with information on sectors and workers covered in each sector.

The Committee notes the Government’s indication that: (i) social dialogue programmes were conducted across 26 institutions between 2023 and 2025; (ii) benefits are granted to high-performing export companies that support trade unions or other worker representative bodies, including extra points awarded for signing and implementing collective agreements; and (iii) collaboration is taking place between the BOI and the Department of Labour (DOL) to ensure enterprises’ compliance with the right to organize and bargain collectively; (iv) DOL and the NLAC ensure that collective bargaining remains a labour policy priority and aim at strengthening labour inspection and dispute resolution systems in EPZs as well as promoting workers’ councils which could serve as a bridge to formal unionization and collective agreements.

Regarding the application of section 10.3.2 of the BOI Manual, which allows trade unions with bargaining status to represent employees in collective bargaining and the settlement of industrial disputes concerning the terms and conditions of employment in enterprises with both trade unions and employees’ councils, the Committee notes the Government’s indications that: (i) several enterprises in the Katunayake Export Processing Zone (KEPZ) have both trade unions and employees’ councils; (ii) there are no collective agreements reported in the enterprises having both trade unions and employees’ councils; and (iii) trade unions have been given priority and consulted in dispute settlement in 7 instances since 2018, for issues ranging from wages to retrenchments. The Committee further notes the statistics provided by the Government with respect to three EPZs, namely Biyagama EPZ, Horana and Wagawatta Industrial Park, indicating that there are 5 enterprises with collective agreements, covering 1902 out of 4910 workers (38.74 per cent of the workers covered), in the printing, rubber tires and tubes, personal care products and glass manufacturing sectors.

While taking due note of these elements and of the initiatives taken, the Committee observes with concern that: (i) there are no collective agreements concluded in entities having both employees’ councils and trade unions; (ii) despite the initiatives undertaken to encourage collective bargaining, there seems to be no increase in the number of collective agreements concluded and in force; and (iii) no information has been provided on the number of collective agreements concluded or the number of workers covered in the textile and clothing sectors. The Committee observes in particular that the complete absence of collective agreements in enterprises having both employees’ councils and trade unions appears not to demonstrate the bridging role towards formal unionization and collective agreements that employees’ councils are supposed to play. Based on the above, the Committee urges the Government to take significant steps, including of a legislative nature, to effectively promote collective bargaining with trade unions in EPZs, ensuring that other forms of workers representation do not undermine the role of trade unions and that any act of anti-union discrimination is addressed in a swift and dissuasive manner. The Committee requests the Government to inform on any steps taken in this regard. Encouraged by the indication of the Government that it is considering to review the 40 per cent threshold for unions to be recognized as bargaining agents, the Committee highlights the importance of applying a more accessible threshold in EPZs. The Committee finally requests the Government to provide exhaustive information on the number of collective agreements concluded in EPZs, with detailed sector-specific information, particularly in the clothing and textile sectors, including the number of workers covered in each sector in comparison with the total number of workers in the respective sectors.

Representativeness requirements for collective bargaining. The Committee has for many years requested the Government to review section 32(A)(g) of the Industrial Disputes Act, which establishes a 40 per cent threshold for unions to be recognized as bargaining agents. The Committee notes the Government’s indications that: (i) the possibility of reducing the threshold is under review by the subcommittee established by the NLAC, with a report to be submitted shortly; (ii) 32 collective agreements covering 14,424 workers were concluded in 2023, and 30 covering 13,540 workers in 2024. Encouraged by its indications in this respect, the Committee expects that the Government will soon adopt, after consulting the representative social partners, the necessary measures to amend section 32(A) of the Industrial Disputes Act so that the threshold for unions to be recognized as bargaining agents does not hinder but rather promotes collective bargaining. The Committee further requests the Government to consider ensuring that where no organization meets the established threshold, existing unions can, either separately or jointly, negotiate at least on behalf of their own members. The Committee finally requests the Government to continue to provide information on the number of collective agreements signed and in force in the country, along with the sectors and the number of workers covered by these agreements.

Article 6. Right to collective bargaining for public service workers not engaged in the administration of the State. Having observed that section 49 of the Industrial Disputes Act does not apply to State and Government employees and that existing structures did not require a collective bargaining system for public sector unions, the Committee previously requested the Government to take measures to guarantee public servants not engaged in the administration of the state the right to collective bargaining. The Committee takes note of the Government’s indication that there have been initiatives taken in the past 2–3 years to strengthen mechanisms for dispute resolution in the public sector. This includes the establishment, via Public Administration Circular No. 05/2024, of a framework for social dialogue at three levels – workplace, sectoral and national – in addition to sectoral and national public service dialogue forums which are designed to facilitate a consultative process for collective bargaining and dispute resolution. The Committee notes the Government’s indication that the public sector consists of both the semi-government sector which refer to state-owned enterprises, and the public service and that there were 24 collective agreements signed in the semi-government sector in 2024. The Committee welcomes the signature of the mentioned collective agreements. At the same time, the Committee recalls that: (i) public employees not engaged in the administration of the State and who are therefore covered by the Convention not only include employees in public enterprises but also other categories such as, for instance, municipal employees and those in decentralized entities, public sector teachers, public hospital workers etc; and (ii) these categories of public workers should not only be consulted but be able to collectively negotiate their working and employment conditions, consultations mechanisms not being sufficient. Based on the above, the Committee requests the Government to take the necessary measures, including of a legislative nature, to recognize for all public servants not engaged in the administration of the state the right to collective bargaining, and to provide information on all progress made in this respect.

Request for technical assistance.The Committee welcomes the technical assistance currently taking place in relation to the legislative reform process. The Committee trusts that this will enable the Government to take the necessary measures to address the issues raised in this comment and ensure full compliance with the Convention.