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Friday, November 21, 2025

A Critical Analysis of Structural Barriers to Women's Economic Empowerment in Sri Lanka

The recent repeal of legislation in July 2025 that barred women from working night shifts in Sri Lanka’s hospitality industry was heralded by some as a significant step towards gender parity and economic liberalization. However, from the perspective of a development economist with experience in policy-level government positions and international organizations, this singular action risks being a tokenistic gesture unless it is accompanied by a comprehensive, multi-pronged strategy to dismantle the deep-seated legal, structural, and gendered restrictions that continue to suppress female labour force participation (FLFP) in the nation. The challenge in Sri Lanka is not merely about night work; it is a complex interplay of demand-side legal constraints and pervasive supply-side social barriers that collectively limit women's agency and their contribution to the formal economy.

 The Stark Reality of Female Labour Force Participation

Sri Lanka’s FLFP rate remains stubbornly low, sitting at approximately 31.6% in 2024, a figure that has shown a concerning decline since 1990 [1]. This is in stark contrast to the male labour force participation rate of 69.7%, resulting in a significant gender gap of over 38 percentage points [1]. This gap represents a massive underutilization of human capital, directly impeding the nation's economic recovery and long-term development. 

A comparative analysis with regional peers and successful development models highlights the severity of Sri Lanka's challenge. While Bangladesh, a country with a large garment sector similar to Sri Lanka, records an FLFP rate of 44.2%, the most compelling comparison is with Vietnam, which boasts an FLFP rate of 69.1% and a minimal gender gap of only 9.5% [1]. Vietnam's success demonstrates that high female participation is achievable within the Asian economic context, making Sri Lanka's low rate a matter of urgent policy concern.

 

Country

Female LFP (%)

Male LFP (%)

Gender Gap (Percentage Points)

Sri Lanka

31.6

69.7

38.1

Bangladesh

44.2

80.9

36.7

Vietnam

69.1

78.6

9.5

The data clearly illustrates that the issue is not an immutable cultural phenomenon but a policy and structural failure. The following chart visually emphasizes this disparity: 


The Demand-Side Constraints

The core of the demand-side problem lies in a suite of outdated, protectionist labour laws that, while originally framed as welfare measures, now function as powerful disincentives for employers to hire women. The Shop and Office Employees (Regulation of Employment and Remuneration) Act 1954 and the Employment of Women, Young Persons and Children Act 1956 impose stringent restrictions on women's working hours, particularly at night, and mandate complex administrative prerequisites for employers seeking exemptions [2]. 

These laws create a "cost of compliance" for female employees, effectively making them more expensive and administratively burdensome to hire than their male counterparts. This structural bias is further compounded by provisions that, as the original analysis noted, unjustly categorize women workers alongside minors, thereby undermining their agency and reinforcing a paternalistic view of female employment [3]. While a partial relaxation of night work restrictions for the IT and BPO sectors was a positive step in May 2024, the administrative load remains a "massive burden" for key industries like the garment sector, which employs one in seven women in the country [3]. 

The experience of other nations offers a clear path forward. For instance, Pakistan's 2021 amendment to the Sindh Shops and Commercial Establishment Act, which lifted night work restrictions, demonstrates a regional precedent for modernizing these laws [4]. Sri Lanka must move beyond sector-specific exemptions and adopt a principle-based approach that focuses on safety and consent rather than blanket prohibition.

 The Supply-Side Constraint: The Burden of Unpaid Care and Unsafe Workplaces

The demand-side constraints are only half the battle. The supply-side barriers—those that discourage women from entering or remaining in the workforce—are equally formidable and deeply rooted in social norms. The most significant of these is the disproportionate burden of unpaid care work.

 Data reveals that a staggering 57.2% of the economically inactive population in Sri Lanka are women who cite carer obligations as the reason for their non-participation [5]. This statistic is a powerful indictment of the lack of social infrastructure to support working women. The following pie chart illustrates this dominant factor:


 The absence of affordable, accessible, and quality childcare facilities acts as a concrete barrier to women's ability to take on formal employment, especially night shifts. The Institute of Policy Studies of Sri Lanka has rightly suggested that the cost of childcare should be reflected in minimum wage decisions, a practical solution to improve the financial accessibility of this essential service [6]. 

Furthermore, the threat of workplace violence and harassment, particularly on public transport and in public spaces during night hours, acts as a powerful disincentive. The advocacy by Sri Lankan labour organizations for the ratification of the International Labour Organisation’s Convention on Violence and Harassment (C190) is a crucial policy objective [7]. Ratifying and rigorously enforcing C190 would signal a serious commitment to creating safe work environments, addressing a key supply-side barrier that is common across South Asia. 

Policy Recommendations and The Way Forward

As an experienced professional in development economics, my view is that a piecemeal approach will not suffice. Genuine women's economic empowerment requires a holistic, integrated policy package that simultaneously addresses both demand- and supply-side constraints. 

1. Comprehensive Legal Modernization (Demand-Side)

The government must undertake a complete overhaul of the 1954 and 1956 Acts. The goal should be to replace all protectionist, prohibition-based clauses with a modern, gender-neutral framework centered on worker safety, consent, and employer accountability. This includes:

        Abolishing blanket night work prohibitions for all sectors, replacing them with mandatory, government-audited safety and transport provisions for all workers, regardless of gender.

        Streamlining administrative processes for all work hour exemptions to remove the "massive burden" on employers, thereby eliminating the disincentive to hire women.

 2. Investing in Social Infrastructure (Supply-Side)

Addressing the unpaid care burden is the single most effective intervention to boost FLFP. This requires:

        Public-Private Partnership for Childcare: Establishing a national framework for subsidized, quality, 24/7 childcare facilities, especially in industrial zones and urban centers, to support women working non-traditional hours.

        Wage Board Reform: Implementing the recommendation to factor childcare costs into minimum wage calculations, as proposed by the Institute of Policy Studies [6].

 3. Ensuring Safe and Exploitation-Free Workplaces (Supply-Side)

Safety and fair working conditions are non-negotiable foundations for empowerment.

        Ratification and Enforcement of ILO C190: Immediate ratification of the Convention on Violence and Harassment, coupled with mandatory, industry-wide training and the establishment of independent, accessible reporting and redressal mechanisms.

        Strengthening Overtime Protections: Implementing improved legal safeguards and rigorous enforcement against exploitative working conditions, such as the reported 100-hour work weeks, to protect semi-skilled and labour-intensive workers who are most vulnerable [3]. 

The decision to relax night work laws for hospitality workers is a small, initial step. However, true economic empowerment for Sri Lankan women—and the resulting economic dividend for the nation—will only be realized when the government moves beyond tokenism and commits to a comprehensive reform agenda that recognizes women as autonomous economic agents, free from outdated legal restrictions and supported by a robust social infrastructure. The time for a fragmented approach is over; an integrated, whole-of-government strategy is the only way forward.

 

References

[1] World Bank. (2024). Labor force participation rate, female (% of female population ages 15+) (modeled ILO estimate). World Bank Gender Data Portal. https://genderdata.worldbank.org/en/economies/sri-lanka 

[2] International Labour Organization (ILO). (2025). How to improve female labour force participation in Sri Lanka. https://www.ilo.org/publications/how-improve-female-labour-force-participation-sri-lanka [3] East Asia Forum. (2025). Women still in the dark despite Sri Lanka's night work law reforms. https://eastasiaforum.org/2025/11/15/women-still-in-the-dark-despite-sri-lankas-night-work-law-reforms/ 

[4] Sage Journals. (2023). Women's Work in South Asia: Reflections on the Past Decade. https://journals.sagepub.com/doi/10.1177/23220937231198381 

[5] Department of Census and Statistics, Sri Lanka. (2024). Labour Force Survey Quarterly Bulletin. (Data point derived from analysis of economically inactive population statistics).


[6] Institute of Policy Studies of Sri Lanka (IPS). (2024).Policy Brief: Addressing the Childcare Gap to Boost Female Labour Force Participation. (Recommendation cited from IPS research).
[7] IWRAW-AP. (2024).The ILO's C190 and justice for women at work. https://www.iwraw-ap.org/ilo-c190/

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