IFC and CSE ring the bell for gender equality

For the seventh consecutive year, IFC partnered with the Colombo Stock Exchange (CSE) to ‘Ring the Bell for Gender Equality’.

Celebrated in line with the International Women’s Day, the annual global initiative highlights how greater participation of women in the economy can spur sustainable and inclusive growth, shaping a more equal future. 

“The CSE joined this initiative in 2016 as one of the initial stock exchanges and we believe this is the platform to convene business leaders, investors and other key parties at national level to highlight the growing business and economic case for gender equality,” said CSE Chairman Dumith Fernando. 

In Sri Lanka, the female labour force participation rate remains stagnate at around 35 percent, compared with a steady male participation rate of 74 percent. Similarly, the average female unemployment rate (7 percent) remained more than double that of men (3 percent) between 2011 and 2019. By improving female labour participation, McKinsey Global Institute estimates, Sri Lanka can potentially add US $ 20 billion a year to its gross domestic product (GDP) by 2025 — increasing economic growth by about 14 percent.

Accelerating the pace of gender parity could generate financial returns in the private sector, leading to significant economic, environmental, social and governance gains in emerging markets.

“Pushing for gender equality today is needed for a sustainable tomorrow. Research – including IFC’s – continues to demonstrate that gender diversity in the boardroom boosts financial performance, promotes better decision-making processes and improved environment, social and governance (ESG) practices,” said IFC Sri Lanka and the Maldives Country Manager Lisa Kaestner.

“We need more women business leaders for an inclusive and resilient recovery in the country. I hope that companies and policymakers continue to commit toward accelerating the progress made to date.” 

According to IFC research — under the IFC-DFAT Women in Work programme — the number of women on the CSE-listed boards increased from 8.2 percent in 2018 to 10.1 percent in 2022 (from 144 to 240). However, this remains well below the global average of 20 percent. Among the top 30 CSE-listed companies – as highlighted by IFC report ‘Realising Sustainability through Diversity: The Case for Gender Diversity Among Sri Lanka’s Business Leadership’ – the correlation between increased board diversity and financial performance is clear, with positive trends being reported in line with indicators such as return on total assets and price-to-earnings ratio. 

IFC’s ‘Women on Boards’ programme in Sri Lanka is part of the broader efforts to increase women’s private sector participation and leadership by promoting the adoption of corporate governance practices among Sri Lankan companies. IFC’s work in this area is supported by the government of Australia under the IFC-DFAT Women in Work programme.

“The Women in Work partnership is integral to the Australian government’s commitment towards advancing opportunities for women and boost economic growth in Sri Lanka. It is based on global evidence that greater diversity is good for business and the economy,” said Australian High Commissioner for Sri Lanka David Holly.