• Govt, employers, workers join ILO-backed reform 

Sri Lanka is working with the International Labour Organisation (ILO) to strengthen its wage-setting institutions, with the Government, employers and workers seeking to ensure that wages remain responsive to workers’ needs, business conditions and changes in the economy and labour market.

A three-day workshop organised by the Labour Ministry and Labour Department in partnership with the ILO reviewed existing wage-setting institutions and practices and identified priorities for strengthening them through evidence-based approaches and social dialogue suited to Sri Lanka.

Held from Monday (8) to yesterday (10), the workshop brought together representatives of the Government, employers’ and workers’ organisations, the Labour Law Reform Committee, academia and ILO technical experts.

Labour Ministry Secretary S.M. Piyatissa said adequate wages, higher productivity and sustainable enterprises should progress together as Sri Lanka moves forward.

“Strong labour practices can also strengthen our position in global supply chains and support Sri Lanka’s ambition to attract responsible investment and expand ethical, high-value exports,” he said.

ILO Country Office for Sri Lanka Director Joni Simpson said effective wage policies needed to be based on national circumstances, reliable evidence and meaningful dialogue among Governments, employers and workers.

She said wage policies should also be gender-responsive, helping address pay inequalities and advance equal remuneration for work of equal value.

Participants examined principles contained in ILO international labour standards on minimum wage-setting, including workers’ and their families’ needs, economic factors, wage and labour market trends, collective bargaining, implementation and compliance.

Experiences from India, Indonesia and Malaysia were also discussed as examples of evidence-based approaches to wage-setting.

The workshop builds on the ILO’s 2024 tripartite agreement on living wages and the 2025 High-Level Regional Dialogue on Living Wages held in Colombo.

The discussions are particularly relevant to export-oriented sectors such as tea and ready-made garments, where collective bargaining and social dialogue can help achieve sustainable wage outcomes while maintaining competitiveness.

They also come as Sri Lanka continues its economic recovery after a period of exceptionally high inflation that significantly reduced workers’ purchasing power and placed pressure on enterprises.

ILO Wage Specialist Anoop Satpathy said Sri Lanka’s recent economic experience had demonstrated the need for wage-setting institutions to be transparent, predictable and responsive to changing economic and labour market conditions.

“Reliable data, sound analysis and effective social dialogue are critical to achieving wage outcomes that consider both the needs of workers and their families and economic factors,” he said.