Sri Lanka to overhaul labour laws with unified code by end 2026

Sri Lanka
By Editor_1
-srilankabusiness.com

COLOMBO — Sri Lanka plans to introduce a new labour code by end 2026, to replace outdated laws and shift the country away from a history of industrial confrontation and towards a productivity-first model.  

Announcing the plans at the launch of the National Export Development Plan 2026-2030, Minister of Labour, Anil Jayantha Fernando, said a cabinet-appointed expert committee was currently merging and updating old acts into a single legal framework, adding that a draft will soon be open for public and expert review.

The new legal framework is designed to move past decades of fractured labour relations, he said.

Noting that Sri Lanka has faced a history of antagonization and confrontation in industrial relations in the past,” Fernando said the objective of the labour reforms was to create a conducive environment and a peaceful working environment in all the working places.

The legal reforms will be backed with systematic educational updates to ensure the workforce aligns with national export targets, alongside aggressive digitalization to cut production costs, Fernando said.

The reform comes as the government attempts to reposition Sri Lanka’s economy by prioritizing human capital over natural resources to secure a competitive edge in global markets.

According to Fernando, traditional competitive factors like raw materials and technology can be easily bought globally, leaving human talent and labour efficiency as the country’s main levers for growth.

The new laws will comply with international standards and will serve as a key pillar for the Export Development Board’s (EDB) five-year strategic plan to integrate Sri Lanka into global supply chains.

-economynext.com

Editor_1
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