Stakeholders emphasise flexible work hours, restructuring costs of vital importance to sustain apparel industry:
Ministry of Labour states increasing female workforce participation remains key objective:
The Shippers Academy of Colombo, in partnership with the American Chamber of Commerce (AmCham) and The Joint Apparel Association Forum (JAAF) held an awareness program on the need to prioritise Sri Lanka’s labour law reforms to develop competitive industries and services.
Advisor to the Ministry of Labour and Foreign Employment, Shan Yahampath said, “If we are to develop quickly, we need to generate USD 15 billion per annum. To do this, we need to attract FDIs,” he said, adding “adopting efficient labor laws are pivotal to this, as we need to focus on job creation and understand the role SMEs play.”
Secretary General of JAAF Yohan Lawrence said, “Improving flexibility in terms of work hours is advantageous not only for employees but also employers.”
“If a manufacturing plant is in a region that doesn’t make the economies of scale worthwhile, the cost-effective ability to relocate and restructure is essential. The law should allow this,” he said.
The need to upskill employees via timely learning and development which is crucial for the sector’s growth was also highlighted.
President of AmCham, Shirendra Lawrence said, “The textile, security, catering and other sectors are governed by a separate set of laws. Unifying this will certainly be more attractive to investors.”
CEO of the Shippers Academy, Rohan Masukorala said that the eight-hour work week initiated in 1926 is not conducive to the modern world which is marked by the rapid growth of Artificial Intelligence.
“Sri Lanka cannot be a competitive business hub without adhering to current international labour practices. This must be achieved through industrial harmony.” Representing the collective of the Free Trade Zones, Chairman of the Free Trade Zone Manufacturers Association Dhammika Fernando outlined concerns about Sri Lanka’s labour laws, stating that the current legal framework does not prepare Sri Lankan workers to enter or stay competitive in the changing world of work.
“The number of jobs that will be created in ten years’ time is unknown to us. Sri Lanka must prepare its workforce for that future while keeping investments in mind.
The Board of Investment was given an FDI target of USD 1.5 billion to be met for this year. However, it’s October and the country is struggling to bring in USD 750 million. In comparison, regional peers such as Bangladesh have already gained the infusion of USD 2 billion and even Myanmar has attracted USD one billion.”
Private sector representatives in the service and manufacturing industries who participated at the forum, raised concerns, while also adding clarifications to labour reforms.
