In a recent conversation with the Sunday Observer, Dr. Thomas Kring, Chief Technical Advisor at the International Labour Organization (ILO), shed light on the transformative initiatives under the Jobs for Peace and Resilience Programme, particularly emphasizing the SPARK Skilled Youth Entrepreneurship Competition 2024. Supported by the ILO and the South Asia Leadership in Entrepreneurship (SALE) project, and funded by the US Department of State, SPARK aims to inspire and empower young entrepreneurs across Sri Lanka.
Organised by the Ceylon Chamber of Commerce, SPARK is a national competitive platform designed to inspire and empower aspiring young entrepreneurs, focusing on both school students and young adults. The competition offers invaluable skills development, exposure, and an opportunity for winners to gain international experience and networking opportunities. Dr. Kring’s insights delve into the broader impact of the programe, highlighting various projects, their outcomes, and the challenges faced by the Sri Lankan labour market. Dr Kring has been with the ILO for over six years, managing the Jobs for Peace and Resilience Programme for the ILO in Sri Lanka.
Q: Can you describe the Jobs for Peace and Resilience Programme and its main objectives?
A:The Jobs for Peace and Resilience Programme encompasses a portfolio of projects primarily focused on creating employment and fostering economic integration, particularly in the Northern Province of Sri Lanka. Funded by Australia and Norway, this program has been ongoing for nearly 12 years. Its main objectives are to empower women, build Government capacity, and enhance private sector involvement, particularly through value chains. This initiative aims to double and triple farmers’ incomes by improving market access, seeds, technology, and advice, thereby significantly enhancing the quality of yields.
Q: What has been the most impactful project or initiative under this program so far?
A:The program’s impact varies based on different target groups and success measures. While the SALE (South Asian Leadership in Entrepreneurship) project stands out at a national level for promoting entrepreneurship and private sector development, rural projects such as those focusing on enhancing agricultural value chains have been pivotal. With the SALE project, we identified many potential avenues and areas needing policy development. The project aimed at creating a dialogue between policymakers, stakeholders, and beneficiaries, with the Ceylon Chamber of Commerce playing a significant role in connecting these groups. The Government’s ratification of Convention 188, ensuring decent work in the fisheries sector, is expected to impact half a million people in Sri Lanka, highlighting the program’s multifaceted impact.
Q: How has the program specifically supported female-headed households and people with disabilities in the North of Sri Lanka?
A:The LEED project (Local Empowerment for Economic Development and Reconciliation) and the current PAVE initiative (Promoting the Advancement of Vulnerable Women and Enterprises) have significantly supported female-headed households and people with disabilities. Projects in the seaweed and gherkin (cucumber) export sectors have empowered women by providing training, seeds, and technology. For instance, in isolated fishing villages, women have been trained to cultivate seaweed, offering them economic opportunities and increasing their household influence.
Q: Can you share any success stories from individuals or communities that have benefited from the program?
A:A notable success story involves women in an isolated fishing village in the North, who were trained in seaweed cultivation. This initiative not only provided them with a sustainable income but also empowered them to influence community improvements, such as advocating for mobile banking services. This economic empowerment has positively impacted the quality of life for these women and their families.
Q: In your view, how is the current economic situation in Sri Lanka affecting the labour market?
A:Although the economic situation has improved since the crisis in 2022, the labour market still faces significant challenges. Small businesses, which are crucial for employment creation, have not fully recovered. And small businesses are really where you have the vast majority of employment creation. We all talk about the big companies, but it’s really the small businesses where you have the employment creation. So, unfortunately, the situation is still not great. Limited purchasing power due to inflation continues to strain these businesses, making it difficult for them to expand and survive. This has led to a notable migration of workers seeking better opportunities abroad, further impacting the local labour market.
Q: What are the main challenges workers in Sri Lanka are facing due to the current economic conditions?
A: Workers in Sri Lanka, especially those in the informal economy, face challenges such as job insecurity, lack of welfare support, and absence of social protection.
The economic crisis has led to massive job losses and reduced consumption, affecting small businesses disproportionately. The skills sector lacks the dynamism to reskill workers for other sectors, exacerbating unemployment and underemployment issues. In Sri Lanka, there is no reskilling of labour, leading to increased migration as people seek opportunities abroad.
Q: Are there any new labour reforms or policies being introduced by the ILO to address these challenges?
A:The ILO has introduced the Labour Market Recovery Strategy, developed in collaboration with the Sri Lankan Government, particularly with the Ministry of Labour and Foreign Employment, workers, and employers.
This strategy aims to strengthen small enterprises and promote entrepreneurship. Other initiatives include improving social protection, facilitating the return migration of workers, and enhancing occupational safety and health standards. We are also working on more reforms in the plantation sector as well.
Q: How do these reforms aim to improve job security and working conditions for Sri Lankan workers?
A:These reforms focus on creating an enabling environment for businesses, ensuring job security, and improving working conditions. Promoting entrepreneurship and small enterprise growth is seen as a key driver for employment. Social protection initiatives and occupational safety standards are being enhanced to cover more workers, including those in the informal economy. For example, we have a wage expert at the ILO office working with the government and employers on setting fair wages for all workers.
Q: How can the informal economy be integrated into the formal sector, and what measures are being taken to provide social protection?
A:The informal economy covers a very wide range; you have the most extreme, which is the day labourer showing up at a certain place every day hoping someone will hire him or her for the day and then go home. So there’s no health insurance, there’s no job guarantee, there’s no union. And then you have the other extreme, the full formal, which would be like a civil servant, you have union representation, you have contracts, you have a fixed salary, health insurance and so on.
We have a wage expert here at the ILO office who is working with the Government and employers on how to set wages to make them fair for everyone at home. Then, you have occupational safety and health, which is often a serious issue in the informal economy. Because companies are not registered, there’s no inspection, so construction companies and manufacturing companies might operate where they actually put their workers’ lives and well-being at risk. Integrating the informal economy involves offering social protection, union representation, and occupational safety. The ILO works on various programs to improve these aspects, helping shift informal workers towards more formalised employment. This includes setting fair wages, ensuring occupational safety, and providing health insurance through national schemes.
Q: Based on your experience, what additional measures should be taken to strengthen the labour market in Sri Lanka?
A:Strengthening the labour market requires fostering private sector growth and improving skills training. Ensuring policy stability is crucial for long-term business planning. Because what we always hear is when parties or Governments change, policies change, and in some cases, even when the Minister changes, people have to start and change from scratch. We often hear that from employers that they lack skills or they can’t attract skilled labour. I think there is a question of making sure that the skills that are taught in school and in the vocational training institutes are relevant for the employers so they can use trained workers actually in the field. Aligning educational and vocational training with market needs will make workers more employable. Special programs for vulnerable groups, like people with disabilities and single mothers, are also essential for inclusive growth.
Q: What role can the Government and private sector play in supporting sustainable livelihoods and improving employment opportunities?
A:Both the Government and private sector are key to supporting sustainable livelihoods. The Government can create an enabling environment for businesses, ensure policy stability, and provide targeted support for vulnerable groups. The private sector can offer employment opportunities and invest in skills development. Collaboration between these sectors is vital for sustainable economic growth.
Q: What are the future plans for the Jobs for Peace and Resilience Programme in Sri Lanka?
A:Future plans include continuing the PAVE initiative until next year and extending the SALE project for another two years, focusing on strengthening institutions that support enterprise creation. Efforts will also continue in enhancing training tools and supporting entrepreneurship through competitions like the SPARK competition.
