• SL needs to jump-start and accelerate its economic transformation
• Says deeper structural transformation must be wrought through better market integration that raises productive efficiency 
• Investment by private sector essential to enhancing productivity of workers and entrepreneurs
• Stresses need for policymakers to adopt a credible policy package that will enable recovery and growth
• Recommends a comprehensive policy framework for a job-rich and inclusive recovery and transform

One of Sri Lanka’s most important development priorities must be to grow its stock of decent jobs and ensure inclusive access to them, particularly by women and young people, the International Labour Organisation (ILO) said. 

In an effort to achieve this, the island nation needs to jump-start and accelerate its economic transformation. However, effort must be carried out without compromising the country’s environmental capital, said the agency in its latest publication on Sri Lanka.

“Deeper structural transformation must be wrought through better market integration that raises productive efficiency and generates decent employment opportunities. 

 This in turn requires private sector confidence and investment and developing the productive capacity of entrepreneurs and workers, so that they can grow businesses, access jobs and increase earnings,” the ILO said in its report titled ‘The labour market implications of Sri Lanka’s multiple crises’, which was published this week.

Stating that the private sector’s involvement is essential, investment by the sector and enhancing the productivity of workers and entrepreneurs in turn require greater factor and product market efficiency, including skills development, the ILO said. Social dialogue was identified as crucial to ensure an inclusive approach. 

Further, gender dimensions and deficits relating to such groups as young people need to be addressed in the design and implementation of recovery strategies. 

In an effort to ease out the crisis, the ILO proposed interventions under three broad policy pillars: macroeconomic policies to stabilise the economy and restore investor confidence, export-led growth through the upgrading and transformation of production structures and labour market, social protection and skills policies to generate decent jobs and inclusive access to them. The agency asserted that the underlying economic imbalances need urgent treatment, with a clear and comprehensive policy framework that focuses on short, medium and long-term solutions and directly addresses the underlying causes.

 
“Policymakers need to adopt a credible policy package that will enable recovery and growth. The period of economic convalescence can be utilised to fast-track the economic transformation that has been long overdue, to deliver job-rich growth for sustainable recovery and more,” the report stated.

The ILO recommended a comprehensive policy framework for a job-rich and inclusive recovery and transformation structured around the three priorities: (1) Macroeconomic policies ensure the uninterrupted supply of essential commodities, restore economic stability and investor confidence, (2) Policies to support private sector-led economic diversification and job creation and (3) Labour market, social protection and skills policies to promote decent jobs and inclusive access to them. 

These broad interventions need articulation through specific policies and strategies to produce a coherent and comprehensive programme to enable Sri Lanka to transform and grow out of the present crisis and reduce its vulnerability to other crises in the future, the agency stressed.