Govt. calls for private sector participation in labour law reform for modernisation

•  Advisor to Labour and Foreign Employment Ministry Shan Yahampath emphasises need for investor-friendly labour laws 
•  Says reform of labour laws aims to create job opportunities but a divide between private and public sectors hinders progress
•  Points out that to boost job creation, private sector companies should have capacity to hire and terminate employees efficiently
•  Argues against government regulations that prioritise job protection over entrepreneurial growth

By Shabiya Ali Ahlam
While Sri Lanka is in the process of reevaluating its outdated labour laws, which do not align with the current global trends and developments, the Labour Ministry is urging the country’s private sector to actively engage in and support the forthcoming reforms.

Advisor to Labour and Foreign Employment Ministry Shan Yahampath asserted that Sri Lanka is in dire need of investment-friendly labour laws that would make the island nation appealing to investors and for that, the private sector cooperation is paramount.  

While pointing out that the main objective of reforming the existing labour laws is the need to create jobs, he said that unfortunately in Sri Lanka, there is a clash between the private and public sectors. 

“The private sector, in the minds of a lot of people is the enemy, not forgetting the fact that majority of the people in the country are working for the public sector. They are the so-called engine of growth. So, what aren’t we (economy) moving? 

In my opinion, the private sector is a bit reluctant to make investments in new technologies, as they depend on poor labour. Certain industries and businesses encourage poor labour and we need to be honest about that,” said Yahampath, addressing a forum organised by the Shippers’ Academy Colombo (SAC), last evening. 

Further, he asserted that efforts need to be taken to ensure that the private sector companies can create and offer jobs easily, so that they in turn would create more jobs. However, there also should be a process where they should be able to let go off people easily without trouble. 

Sri Lanka’s current labour law does not allow employers to terminate employees, unless on disciplinary grounds.  

“The role of the government should not be to protect the jobs of people. You may agree or disagree. If the government has regulations to protect jobs of people, at the cost of entrepreneurs, I don’t think this economy will ever develop … very unlikely,” said Yahampath, referring to the situation faced by certain sectors, where they have to continue paying wages despite not having orders. 

 He noted that instead, the government should have a system to protect its people, regardless of where they work. “That is social protection; we need to develop that,” he said. 

Yahampath went on to share that the upcoming changes in the labour law would have an integrated comprehensive social protection system to protect people.

He said a draft of the proposed labour laws would be available in both Sinhala and English by next week.