‘Low female workforce hinders economic growth’

 From left: WPAN Chairperson Dr. Roshan Perera, Attorney-At-Law Shyamali Ranaraja and First Vice Chairperson of the Women’s Chamber of Industry and Commerce Gayani de Alwis 

Women’s Policy Action Network underscores six key areas that restrain women from entering labour force  

Women constitute 52% of Sri Lanka’s population, yet their participation in the labour force has stagnated at around 30% for several decades. Amidst the country’s emigration challenges and a male labour force participation rate at a saturation point of 96% within the most productive age group, it is crucial for Sri Lanka to address the underrepresentation of women in the workforce to sustain targeted investments as the country gradually rises from its economic downfall.   
Recent research has identified several factors contributing to the stagnant female workforce participation: restrictive labour laws, inadequate social infrastructure, lack of recognition in the informal sector, discriminatory land laws, limited participation in the digital economy, and financial barriers faced by women entrepreneurs.  
These issues were addressed at the press conference, ‘Unlocking Potential: Policies for Women’s Economic Empowerment,’ held on July 11 by the Women’s Policy Action Network (WPAN). Facilitated by the Advocata Institute, the WPAN aims to drive policy reforms through advocacy for the economic empowerment of women.  

Labour Laws

Inadequate infrastructure for part-time and night work functions as a significant barrier for women seeking to join the workforce. Speaking on the topic, WPAN Chairperson Dr. Roshan Perera emphasised that safe and reliable transportation is essential for those opting for night-time work.  
Attorney-At-Law Shyamali Ranaraja added that expecting employers to reimburse or provide transport for night-time workers without government support for night-time transportation would be burdensome. She emphasised that the state should be responsible for providing general infrastructure, such as transportation, for night-time workers.  
“But, 95% of women report being harassed during the day on public transport. Can you imagine what it will be like at night?” Ranaraja added, highlighting the necessity of combining the rule of law, law enforcement, and infrastructure to ensure more women can join the labour force.  
With many women taking on the role of caregivers, they are more inclined towards part-time work. However, Dr. Perera explained that Sri Lanka’s labour laws disincentivize employers from hiring part-time workers; therefore, these laws need to be amended to enable more part-time employment opportunities for women. 

 
Social Infrastructure  

The disproportionate burden that women bear in terms of household chores and care for the elderly and young often compels them to opt out of the labour force.  
“There is a huge lack of affordability and access to reliable and quality child care, as well as inadequate monitoring of childcare centres,” Dr. Perera stated. She added that with a rapidly ageing population, elder care will increasingly paralyse women’s workforce participation.  

To address this issue, the WPAN calls for the regulation and monitoring of childcare services and incentivizing the corporate sector to provide private daycare centres. “Of course, this is limited to companies that can afford it, but many Small and Medium Enterprises (SMEs) cannot. Therefore, there needs to be a system where daycares can be established. Similarly, for elder care, there is infrastructure available with closed schools and vacant buildings that could be repurposed for daycares or elder care,” Dr. Perera observed.  
Commenting on the topic, Ranaraja opined that expecting employers, especially in the private sector, to provide childcare is not feasible. “Most large-scale employers are in urban areas, particularly Colombo. Asking an employee who lives miles away to bring a small child to Colombo for childcare is not productive. We need to consider village-centric models, which could also incorporate elder care.”
Ranaraja also suggested public-private partnerships, such as requiring new condominium developments to dedicate space for childcare, would help address the issue. This would place the responsibility on condominium authorities rather than exerting pressure on the government for new resources. Additionally, a village-centred model could use praja shaala (community halls) in partnership with local employers, providing employment for women as caregivers in the area.  
An issue with expecting employers to provide childcare is the difficulty in monitoring and maintaining standards. “What guarantees are there that children won’t be exploited or abused? Without the state taking responsibility, asking private institutions to handle this could cause more harm,” Ranaraja said.  

Speaking on paid parental leave, Dr. Perera noted that while some institutions have made progress, it is not uniformly recognised across all institutions.  
Meanwhile, Ranaraja added that although Sri Lanka has ratified the ILO convention on maternity benefits, its implementation places the entire responsibility for paid leave on the employer. “Maternity leave is intended to benefit the child, not just the mother. However, placing the full burden on employers disincentivizes them from hiring women due to the high cost. This is not the employer’s fault nor is it a reason to discriminate against women, but it is a flaw in the benefit system’s structure,” she observed.  
In other countries, such benefits are provided through a social security system, which, according to Ranaraja, is more equitable as the entire society contributes, enabling better and longer care.  
Ranaraja also highlighted problems with the current social security system. Women can withdraw benefits due to a superannuation scheme, which allows payouts at two points: first, retirement due to marriage, which suggests women should leave the workforce to focus on family; second, at the retirement age of 50, when women may still need to support their children in terms of education, infrastructure for the house or marriage of the child. This exerts pressure on women to withdraw funds for family needs, which does not benefit their retirement in any way, Ranaraja emphasised.  

Informal Economy  

The WPAN also highlighted the need for domestic work to be legally recognised as formal employment. “Domestic workers need to be provided with Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF), and there needs to be a written law and gratuity payments for domestic workers, which has not been done. Because domestic workers are fragmented and cannot come together into one collective, there needs to be some intermediary agency to push for these reforms,” Dr. Perera stressed.  
Emphasising that domestic workers, who are largely female in Sri Lanka, were excluded in 2016 from the Minimum Wage legislation, paid leave, time off, and overtime payments, Ranaraja questioned, “How can we demand that other countries provide the same benefits for our female domestic workers who largely migrate as domestic workers, unskilled or low-skilled workers?”  

Digital Infrastructure

Although Sri Lanka has high literacy rates in writing and numeracy, digital literacy remains poor and needs improvement. Two contributing factors are the limited access to the internet, which is good in urban areas but lacking in rural regions, and the high cost of devices, especially after import restrictions and duty increases. “How can we have a universal digital economy without including everyone in this space?” Dr. Perera questioned, noting that the WPAN has put forward several policy recommendations to address these issues.  

Financial Inclusion

In Sri Lanka’s business landscape, 75-80% of enterprises are SMEs, but only 25% are women-owned. This number could be higher, considering that many businesses run by women are officially owned by a close male relative, such as a father, brother, or husband.  
Gayani de Alwis, the first Vice Chairperson of the Women’s Chamber of Industry and Commerce Sri Lanka, noted that a survey by the Women’s Chamber revealed that banks are often unsupportive of issuing loans to women. The questions asked of women who visit banks for loans often discourage them from obtaining financial assistance. “We need to make women more capable of accessing finance and provide them with more opportunities,” she said.  
Additionally, de Alwis emphasised the critical role of changing mindsets in empowering women economically. “Laws are good, but how do we truly change people’s minds at a grassroots level? Awareness is key,” she asserted, calling for increased support for female entrepreneurs. She urged the inclusion of gender equality discussions at all levels of education to dismantle misogynistic viewpoints and remove ingrained stereotypes.  

Dr. Perera highlighted the common knowledge of the abuse women face from lenders in Sri Lanka, especially given the large number of women in the microfinance sector. She stressed the need for regulation to protect women from such exploitation.  

Land Laws

Dr. Perera noted that only 16% of all privately owned land in Sri Lanka belongs to women. She stressed that various legislative barriers in inheritance hinder women from owning land, but it is often the practices within District Secretariat offices and Grama Niladhari Divisions that favour male spouses or siblings over females. While amendments to certain legislation have been recommended, Dr. Perera emphasised that policy reforms must also address the need for a mindset change among government officers responsible for these tasks.  
Sri Lanka ranks 122 out of 146 countries in gender equality according to the Global Gender Gap Index, reflecting significant disparities in economic participation, education, health outcomes, and political empowerment. Addressing the barriers that hinder women is critical for economic growth. With an ageing population, significant emigration of skilled workers, and more than 50% of resources underutilised, tapping into the full potential of women in the workforce is imperative. Overcoming these barriers not only promotes gender equality but also drives economic prosperity and social progress for Sri Lanka.  
Photo by Kithsiri De Mel