The Government is looking to enhance the economy through digitisation, as well as to create new job opportunities through an economic boom, notes Deputy Minister of Labour Mahinda Jayasinghe, addressing concerns of potential job losses post digital transformation.
He also asserted that no State employee would be discharged from services prematurely because of their roles becoming obsolete owing to digitisation.
As Sri Lanka strides toward digital transformation, key sectors such as postal services and labour face both challenges and opportunities. While digitisation streamlines processes and enhances efficiency, it also raises concerns about revenue losses, workforce adaptation, and the future of traditional services.
This debate came to light following complaints by unions affiliated to the Department of Posts that the payment of fines via the recently introduced GovPay had resulted in a loss of between Rs. 600-800 million in annual revenue.
They claimed that it was pertinent that the Department of Posts had recently developed an SMS mechanism to alert any person whose fine had been paid at any post office in Sri Lanka, although the Police had not paid much attention to the proposal in the wake of the digitisation processes.
However, conversations with Lanka Postal Services Union President Jagath Mahinda and Deputy Minister Jayasinghe reveal that their ideas on digitisation were not too far apart. They shared insights on how digitisation was reshaping their respective fields – postal services and employment, with their perspectives highlighting a balancing act between modernisation and sustainability.
Evolving beyond letters and parcels
The Department of Posts, once primarily responsible for delivering letters, has expanded its role over the years to include bill payments, pension disbursements, and even spot fine collections. However, with the rise of digital payment platforms, some of these services are being phased out from the postal system, leading to a reduction in commission-based revenue.
Mahinda acknowledged this shift but remained strongly optimistic. “Digitisation takes away certain services from us, such as fine payments and electricity bill collections, but if the people benefit, then that is what truly matters.
“The Department of Posts is making a sacrifice, but it is not a major loss because we still provide many essential services. When we began, we only distributed letters and parcels, and we still continue to perform those tasks, but our role has grown by leaps and bounds since,” he said.
Traditionally, the Department of Posts earned commissions from services involving private transactions, such as bill payments and fines. Discussing the services rendered by the department, Mahinda said that not all services involved commission earnings.
“We earn commissions when the citizens pay for our services, such as bill payments and fine payments, but we also perform other services such as pension payments and payment of welfare benefits. We do not earn commissions from payments and disbursements originating from the State. With more citizens opting for online payments for their bills, and now with fine payments also moving to digital platforms, these revenue streams are shrinking,” he said.
“However, we are adapting by introducing new services like Cash on Delivery (COD) and Postal Money Transfer (PMT), which allow instant money transfers of up to Rs. 100,000 from any post office,” he added.
Embracing technology to stay relevant
The Department of Posts recognises that to remain competitive, it must modernise.
“Private courier services, leveraging technology for efficient deliveries, have gained an edge in the past few years. We have the infrastructure and public trust built over several decades, but we lag in technology and the resources to deliver. We need better tools to improve parcel deliveries and expand services like same-day collections and doorstep deliveries, just like some private entities that have capitalised on the gap in the industry,” Mahinda noted.
Despite the decline in traditional mail, parcel deliveries, especially with the newly introduced COD service, have surged. Mahinda pointed out that the Government needed to carefully think through its strategies to enable the Department of Posts to remain relevant in the wake of technological advancement and rising competition from the private sector.
Contrary to fears that digitisation would lead to job cuts, Mahinda said that the department was understaffed. “We protested during the ‘Aragalaya’ movement because we operate with only 50% of the required junior staff. We need more postmasters and delivery staff, not fewer. This is what we continue to protest for,” Mahinda said.
Digitisation as a catalyst, not a threat
Deputy Minister Jayasinghe echoed the sentiments of the union leader, emphasising that digitisation did not equate to job losses; rather, it reshapes employment opportunities.
“Under no circumstances will jobs be lost because of digitisation. Physical work may decrease, but the workforce can be repurposed. Roles may evolve and some may even decline, but employment will not disappear. New opportunities will be created,” Jayasinghe stated firmly.
He acknowledged that some jobs may become obsolete, but attrition, such as retirement, would handle the transition naturally. “For example, if a 55-year-old employee performs a role that is no longer needed and he is unable to repurpose, that position will be phased out when they retire at 60. No one will be forcibly removed from the workforce,” Jayasinghe assured.
He stressed that while certain jobs faded, digitisation created new ones. “Artificial Intelligence (AI) and automation generate opportunities in tech-driven sectors, especially in the private sector. These are emerging trends to which we must learn to adapt in order to keep up with the developing world. The key is reskilling and upskilling,” he said.
The road ahead
A critical point in Jayasinghe’s vision is reducing reliance on the public sector.
“Our goal is job creation, not just Government employment. A stronger economy means more private sector opportunities being created, which means more employment. Constantly relying on the Government to provide State sector employment imposes a weight on the economy. A bloated workforce strains the Treasury as well,” he said.
Digitisation, he argued, would stimulate business growth, leading to demand in logistics, e-commerce, and IT services.
To prepare workers for this shift, the Government plans extensive training programmes. “Many lack job-related skills, which is a serious deficiency we have observed,” Jayasinghe admitted.
“We are collaborating with vocational training institutes and affiliated ministries to offer workshops, certifications, and tech education to ensure that future inductees to the workforce will be adequately trained and skilled to perform the necessary tasks. We must ensure workers are equipped for new roles in a digital economy,” he said.
While both Mahinda and Jayasinghe agreed that digitisation was inevitable and beneficial, they highlighted that it must be managed carefully.
For postal services, the challenge is to modernise infrastructure while retaining public trust. New revenue models, like e-commerce logistics and digital financial services, could offset losses from declining traditional services.
For the development of the labour force, the focus is on reskilling and private sector growth. Rather than resisting change, workers must be prepared for evolving tech-driven roles. As Sri Lanka navigates this transition, the key lies in balancing efficiency with inclusivity, ensuring that no one is left behind in the digital revolution.