Sri Lanka to absorb informal sector employees into formal sector
Sri Lanka’s estimated four million informal sector employees may soon be absorbed into the formal sector, granting them the dignity of their labour through two landmark initiatives.
The new unified 'Employment Law,' which includes a practitioner licensing system, and the proposed social security system are nearing final approval to be tabled in Parliament.
Labour and Foreign Employment Minister Manusha Nanayakkara revealed that the draft laws for the comprehensive social security system have already been submitted for the Cabinet’s approval. These laws aim to extend benefits to all workers, including those in the largely neglected informal sector.
“We have come up with a unique system and submitted this for the approval of the Cabinet of Ministers. The Cabinet is expected to grant approval for this proposed social security system in the very near future. Afterwards, all working persons will become eligible for a pension, EPF/ETF, as well as for an unemployment insurance cover in case of loss of employment,” Minister Nanayakkara stated.
He shared these remarks with journalists at a media workshop on human trafficking, organized by the Sri Lanka Foreign Employment Bureau in Colombo. Following extensive studies and consultations, a team of experts examined existing social security systems in Indonesia, India, and Australia to develop the proposed system.
These initiatives represent a significant step towards integrating informal sector workers into the formal economy, ensuring comprehensive social security benefits and employment protections.