Wage Hike, Longer Hours in Labour Shake-Up
Sri Lanka’s government has unveiled sweeping labour reforms under commitments linked to the International Monetary Fund programme, aiming to modernise outdated laws and boost investment.
The 2026 plan will replace 14 labour statutes with four consolidated acts covering trade unions, occupational safety, employment, and manpower regulations. The National Minimum Monthly Wage will rise to Rs. 30,000, while the daily wage increases to Rs. 1,200.
Proposals include flexible working arrangements allowing shifts of up to 16 hours inclusive of breaks and provisions that could make overtime compulsory in certain cases. Restrictions on women working night shifts will be eased with mandatory safety measures.
New rules may require unions to have at least 100 members for recognition and mandate secret ballots before strikes. While officials say the changes will enhance productivity and attract foreign investment, trade unions warn they could weaken worker protections and collective bargaining power.
