ADB BRIEFS
Enhancing Women’s Labor Force
Participation in Sri Lanka
KEY POINTS
• With only one in every
three women active in the
labor force in Sri Lanka,
the country’s female labor
participation is one of
the lowest in South Asia.
The gender gap in labor force
participation varies by age
and education level, and the
issue is prevalent across rural,
urban, and estate sectors.
• Social and gender norms,
women’s unpaid work,
gaps in support for care
services and labor laws,
occupational segregation,
and lack of access to training
and safe transportation are
among the factors shaping
the low female labor force
participation in Sri Lanka.
• Recommendations for
increasing female labor
force participation include
reviewing labor laws,
improving maternity
benefits, addressing sexual
harassment, investing in
childcare, ensuring safe
transport, expanding
access to skills, and
financial inclusion.
INTRODUCTION
Increased women’s labor force participation drives sustainable economic growth by
expanding the workforce, boosting productivity, and raising domestic demand for
goods and A World Bank study estimated that increasing women’s labor force
participation would raise South Asian gross domestic product by 13%–51%, depending
on the number of gender barriers to employment As countries reach gender
parity in education, encouraging women to enter the labor force at rates similar to
men maximizes the benefits of investing in workforce skills Promoting
a diverse workforce fosters innovation and boosts private sector
Increasing women’s direct access to earnings contributes to poverty reduction and
increases household expenditures on health, education, and child nutrition. Labor force
participation empowers women and gives them more options to leave situations of
intimate partner
Sri Lanka’s gender gap in labor force participation is percentage points, a third
higher than the global average and 5 percentage points higher than for all countries
with high human Under its National Transformation Road Map, Sri Lanka
Note: In this publication, “$” refers to United States dollars.
1 S. Fabrizio et al. 2020. Women in the Labor Force: The Role of Fiscal Policies. IMF Staff
Discussion Note.
2 World Bank. 2024. South Asia Update: Women, Jobs and Growth.
3 D. Halland and K. Ell. 2023. Close the Gender Gap to Unlock Productivity Gains. Moody’s.
4 S. Pimkina and L. de la Flor. 2020. Promoting Female Labor Force Participation. World Bank Group.
5 UN Women. 2024. Five Things to Accelerate Women’s Economic Empowerment.
6 United Nations Development Programme. 2025. Human Development Report: Gender Inequality
Index. The gender gap is the percentage point difference between male and female labor
force participation.
Kathleen McLaughlin
Gender Policy Consultant
Gender Equality Division
Climate Change and Sustainable
Development Department
ADB
Ketevan Chkheidze
Gender Specialist
Gender Equality Division
Climate Change and Sustainable
Development Department
Asian Development Bank
NO. 389
MAY
2026
ISBN 978-92-9277-792-0 (print)
ISBN 978-92-9277-793-7 (PDF)
ISSN 2071-7202 (print)
ISSN 2218-2675 (PDF)
Publication Stock No. BRF260167-2
DOI:
ADB BRIEFS NO. 389
2
plans to shift from crisis management to a fully developed
economy by Sri Lanka has committed to increasing female
labor force participation as one of the targets for achieving its
sustainable economic growth.
Through its country partnership strategy, 2024–2028, the Asian
Development Bank (ADB) supports Sri Lanka in pursuing its
national economic transformation and sustainable
As part of its knowledge support for exploring strategies to
stimulate inclusive growth, ADB supported a study examining
the factors influencing the female labor force participation rate
(FLFPR) in the The study analyzed sex-disaggregated
labor force data and research on female labor force
participation (FLFP) in Sri Lanka to profile trends and the current
situation. It highlighted wider social, economic, and gender-
related challenges behind Sri Lanka’s persistently low FLFPR and
provided an in-depth exploration of the related themes.
Based on the key trends highlighted in the study, this brief
focuses on the major issues surrounding female labor force
participation in Sri Lanka. It also applies data and analysis
from various sources to inform development practitioners,
governments, and other stakeholders. The brief is structured
around the following sections: gender patterns in the labor market
in Sri Lanka, enabling labor related legal and policy framework,
main challenges to increasing female labor force participation,
promising practices showcasing regional and international best
practices, and
7 Government of Sri Lanka. Ministry of Mass Media. 2025. President Presents ‘National Transformation Road Map’ Government’s Objective is to Develop
Sri Lanka as a Thriving Nation by 2048.
8 ADB. 2024. Country Partnership Strategy: Sri Lanka, 2024–2028—Fostering Sustainable Recovery, Building Resilience, and Reviving Growth.
9 ADB. 2025. Exploring the Factors Behind Low Female Labor Force Participation in Sri Lanka.
10 In addition, this brief presents data from Sri Lanka’s Labor Force Survey and other sources to profile labor data that is associated in the literature as influencing
female workforce participation.
11 Government of Sri Lanka. 2025. Sri Lanka Labour Force Survey 2024. Department of Census and Statistics.
GENDER PATTERNS IN THE LABOR
MARKET IN SRI LANKA
Sri Lanka’s FLFPR for the population aged 18 and above is %,
less than half of the male labor force participation rate (MLFPR)
of 72%.11 Sri Lanka’s female-to-male labor force participation rate
(LFPR) ratio increased from 2012 to 2017, reaching %, but has
since steadily decreased and is now the second lowest in South
Asia standing at % in 2024 (Figure 1). Over the past decade,
Bangladesh and Nepal have surpassed Sri Lanka in increasing the
female-to-male LFPR.
Rural–Urban Divide
As available data suggests, Sri Lanka’s FLFPR is slightly higher
in rural areas than urban areas, but the gender gap in labor
force participation is similar across these categories (footnote 11).
FLFPR is highest in the estate sector (plantation industry) at 39%,
and the variance with MLFPR is slightly less than for the rural and
urban sectors.
Although only modest differences are evident across sectors,
high variances exist across district locations. According to
the 2024 labor force survey, the highest FLFPR is in Vavuniya
district (%), and the lowest is in Ampara district (%).
The availability of jobs in female-dominated sectors has been
identified as a reason for district variances in FLFPR (footnote 11).
Figure 1: Ratio of Female to Male Labor Force Participation Rate in South Asia and the World, 1995–2024
1995 2000 2005 2010 2015 2020 2024
Bangladesh Bhutan India Sri Lanka Maldives Nepal World
Source: World Bank. 2025. Data: Ratio of Female to Male Labor Force Participation Rate (modeled ILO estimate) (accessed 3 November 2025).
Enhancing Women’s Labor Force Participation in Sri Lanka
3
Figure 2: Male and Female Labor Force Participation Rate by Sector, 2024
0
10
20
30
40
50
60
70
80
Urban Rural Estate
Male Labor Force Participation Rate Female Labor Force Participation Rate
Source: Government of Sri Lanka. 2025. Sri Lanka Labour Force Survey 2024. Department of Census and Statistics.
Employment Sectors
Figure 3 highlights that agriculture, forestry, and fisheries
account for the highest share of total employment among
males and females. Besides this similarity, male and female
employment patterns differ by industry group. Although
manufacturing employs many women and men, female
employment is more concentrated in this sector, accounting
for 24% compared with 14% of male employment (Figure 3).
In contrast, wholesale, retail, and trade employ 16% of all men
in the labor force compared with 12% of women (footnote 11).
Men are concentrated in construction, utility supply,
waste management (11%), and transport and storage (9%).
In comparison, only 1% of women work in these sectors. Women
are concentrated in education, accounting for 11% of female
employment. Although information and communication makes
up only a small percentage of total employment, twice as many
men as women work in this sector (footnote 11). Overall, the
employment profile by industry group reveals gender-based
Figure 3: Share of Male, Female, and Total Employment by Industry Group, 2024 (%)
0 5 10 15 20 25 30
Mining and quarrying
Information and communication
Professional, scientific, and technical
Administrative and support services
Household activities as employers or own use
Financial and insurance activities
Health and social work
Other service activities
Accommodation and food services
Education
Public administration and defense
Transportation and storage
Construction, utility supply, waste management
Wholesale and retail trade, vehicle repair
Manufacturing
Agriculture, forestry, and fishing
Female Male
Source: Government of Sri Lanka. 2025. Sri Lanka Labour Force Survey 2024. Department of Census and Statistics.
ADB BRIEFS NO. 389
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segregation, a pattern that global research links to prevailing
social norms about the types of employment considered
suited to each
Occupational Segregation
The distribution of employed women and men across different
occupational groups shows some gender differences, but the
differences are not as pronounced as those by industry sector,
according to the data. As shown in Figure 4, the most notable
difference is in the Professional occupational group, where the
share of employed women is twice that of men. Men are more
likely to be employed as Skilled Agricultural Workers and Managers
than women. Employed women’s distribution across occupational
groups, such as Craft and Trades, Service and Sales, and Technical
Occupations, remains similar to that of men (footnote 11).
Age
FLFPR is lower than MLFPR across all age groups. Figure 5 shows
that the gender gap is greatest in the 35–54 age group, where the
MLFPR is 50 percentage points higher than the LFPR. Among
youth aged 15–24, the gender gap narrows to just 15 percentage
points. Although FLFPR is highest for the 25–54 age group, this
group also experiences the most significant gender gap in LFPR.
The ages 25–54 are peak years for paid work and childbearing,
child raising, and other unpaid care. During this age period,
the gender gap in LFPR is over 50%. The age data show that
middle-aged men already participate in the labor force at a rate
above 90%. Any increase in labor supply from the population in
the prime working years must come from more women entering
the labor market (footnote 11).
12 E. Carranza, S. Das, and A. Kotikula. 2023. Gender-Based Employment Segregation: Understanding Causes and Policy Interventions. World Bank Group.
13 In Sri Lanka, the GCE comprises two exams: the Ordinary Level (O/L) and the Advanced Level (A/L). The O/L certifies students to move on to A/L, which is a
more specialized exam that determines university placements based on subject grades.
14 World Bank. 2022. Gender Data Portal. Educational Attainment by Level of Education, Cumulative (% Population 25+).
Education Level
Education is a key factor for reducing the gender gap, with FLFPR
very close to MLFPR at the highest education levels (Figure 6).
Women who have completed Grade 5 or less have the lowest LFPR
at 20%. The gender gap in LFPR is most significant among people
who have completed Grades 6–10. The FLFPR rises to % for
women with a General Certificate of Education (GCE) Advanced
Level and nearly doubles to % for those with a post-secondary
degree or
Women with university degree or higher participate in the
workforce at nearly the same rate as men with an equivalent
education level. MLFPR is highest among men with a degree
or higher, but the variance across education levels is less
pronounced for men than for women (footnote 11). However,
employed women’s increasing educational attainment does
not increase overall FLFP as participation drops for women at
low education levels.
The increasing education level of employed persons in Sri Lanka
can be observed since 2016. This rise is mainly due to increased
education among employed women, who have higher education
attainment than employed men. The educational attainment
of all women in the population did not substantially change
between 2016 and Figure 7 shows an increasing
educational attainment among employed women indicating a
trend where women with higher levels of education are replacing
women with lower levels of education in employment. Jobs in
female-dominated manufacturing industries are changing from
manual roles to technical and administrative positions requiring
Figure 4: Employed Population by Occupational Group and Sex, 2024
0 5 10 15 20 25 30
Managers, senior officials, and legislators
Professionals
Technical and associate professionals
Clerks and clerical support workers
Services and sales workers
Skilled agricultural, forestry, and fishery workers
Craft and related trades workers
Plant and machine operators and assemblers
Elementary occupations
Men Women
Source: Government of Sri Lanka. 2025. Sri Lanka Labour Force Survey 2024. Department of Census and Statistics.
Enhancing Women’s Labor Force Participation in Sri Lanka
5
Figure 5: Male, Female, and Total Labor Force Participation Rate by Age Group, 2024 (%)
75
15–24 25–34 35–54 55–64 65+
Male Female Total
Source: Government of Sri Lanka. 2025. Sri Lanka Labour Force Survey 2024. Department of Census and Statistics.
Figure 6: Male and Female Labor Force Participation Rate by Education Level, 2024 (%)
0 10 20 30 40 50 60 70 80 90
Grades 5 and below
Grades 6–10
GCE (O/L)
GCE (A/L)
Degree and above
Male Female
A/L = Advanced Level, GCE = General Certificate of Education, O/L = Ordinary Level.
Source: Government of Sri Lanka. 2025. Sri Lanka Labour Force Survey 2024. Department of Census and Statistics.
Figure 7: Comparison of Education Levels of Employed Women and Men, 2016 and 2024 (%)
0
10
20
30
40
50
60
Male Female Both sexes Male Female Both sexes
Employed, 2016 Employed, 2024
Grades 5 and below Grades 6–10 GCE(O/L) GCE(A/L) and above
A/L = Advanced Level, GCE = General Certificate of Education, O/L = Ordinary Level.
Source: Government of Sri Lanka. 2025. Sri Lanka Labour Force Survey 2024. Department of Census and Statistics.
ADB BRIEFS NO. 389
6
more advanced skills. These findings suggest that opportunities
for less-educated women are diminishing, causing some to leave
the
Marital Status and Children
In South Asia, women are 12% less likely to participate in the labor
force after marriage, regardless of whether they have children
(footnote 2). A study on Decent Work in Sri Lanka found that
women with children faced more difficulty accessing full-time
decent work compared to women without children and men with
A statistical analysis of marital status and labor force
participation for Sri Lanka reveals that having been married and
having a child under 6 decreases FLFP compared to the average for
all women; in case of divorce and widowhood, women often turn
to self-employment. These findings indicate that female heads of
households often may turn to self-employment as a flexible way to
meet their economic needs.
Unemployment
The most recent data indicate that in Sri Lanka, women have
higher unemployment rates than men. The most recent data shows
women’s unemployment rate at %, compared with % for men.
Since 2022, men’s unemployment has decreased percentage
points, whereas women’s has decreased only percentage
Unemployment rates vary significantly across age groups
for both genders, with youth experiencing the most difficulty
finding employment when entering the labor market. As shown in
Figure 8, young women between the ages of 15 and 24 experience
significant employment challenges, with an unemployment
rate reaching %. While more analysis of education and
15 UN Women. 2022. Gender Disparities and Labor Market Challenges: The Demand for Women Workers in Sri Lanka.
16 A. Araar et al. 2024. Women’s Access to Decent Work in Sri Lanka: Addressing Context Specific Barriers. Partnership for Economic Policy.
17 Government of Sri Lanka. 2024. Sri Lanka Labour Force Survey: First Quarter 2025. Department of Census and Statistics.
18 The informal sector comprises employers not registered with the provident fund, not keeping accounts, and with fewer than 10 employees (footnote 11).
Informal employment includes all employees in these organizations plus paid employees in the formal sector without permanent jobs.
19 Government of Sri Lanka. 2014. Sri Lanka Labour Force Survey 2013. Department of Census and Statistics.
20 Women Entrepreneurs Finance Initiative. 2024. Closing the Gender Gap in Sri Lanka.
unemployment trends is needed, a World Bank study on FLFP
indicates that the skills women acquire at advanced education
levels are less aligned with labor force demand than those of
men (footnote 4).
Status of Employment
According to the data, informal employment accounts for more
than two-thirds of employment in Sri Lanka (%).18 Informal
employment accounts for % of male employment, compared
with % of female employment. In terms of type of employer,
over half of women (%) work for a formal employer compared
with only % of men (footnote 11). As shown in Figure 9,
despite their lower LFPR, women make up just under half of public
sector employees. Formal employers are most likely to offer social
and pension benefits, indicating that women prioritize accessing
benefits when seeking employment (footnote 11).
Enterprise Development and Self-Employment
The evidence indicates that women make up only 25% of
own-account workers and 12% of employers, which can involve
running a business. Conversely, they constitute 74% of contributing
family workers, a typically unpaid category that depends on
family-run businesses. Comparison with the 2013 Labour Force
Survey shows that these gender differences in employment status
have changed little in the last While being an own-account
worker is often considered a form of informal employment, it
can also serve as an initial step toward establishing small and
medium-sized enterprises. Only an estimated 25% of businesses
in Sri Lanka are A survey of rural Sri Lankan women’s
entrepreneurial intentions identified a lack of confidence in their
Figure 8: Unemployment Rate by Age and Sex, 2024 (%)
15–24 25–29 30–39 Over 40
Male Female
Source: Government of Sri Lanka. 2025. Sri Lanka Labour Force Survey 2024. Department of Census and Statistics.
Enhancing Women’s Labor Force Participation in Sri Lanka
7
business ideas and insufficient practical guidance on starting a
business as key barriers to women’s enterprise growth. The study
also noted that married women were less likely to develop their
entrepreneurial projects than women who were never married,
widowed, or Women entrepreneurs also reported
difficulties accessing funds due to a lack of property ownership,
limited negotiation skills, low risk tolerance, and the reluctance of
financial institutions to lend to
Gender Wage Gap
Employed women in Sri Lanka earn less on average than employed
men. According to available data, women earning a monthly salary
make 82% of what men earn. For daily wage earners, women
earn only 55% of what men earn (footnote 11). An International
Labour Organization (ILO) study accounted for differences in the
composition of males and females by sector, education, and other
characteristics, and found that, on average, female hourly wages were
approximately 27% lower than male hourly wages. Similar to the ILO’s
findings, global research comparing differences in pay for women and
men in the same occupation categories find that gender pay gaps in Sri
Lanka cannot be fully explained by the skills or career choices of men
and women; some result from gender bias, discrimination, and social
norms that constrain women from negotiating earnings at
An analysis of 2022 Sri Lanka labor force data by researchers at
Sabaragamuwa University, Sri Lanka, found that average wages
were considerably higher in occupations dominated by men than
21 L. Herath. 2024. Barriers to Entrepreneurial Intentions of Rural Women: A Case Study in North Western Province, Sri Lanka. Economics and Business Quarterly
Reviews. 7 (1). pp. 55–71.
22 . Dissanayake and L. Wijewardene. 2023. Impact of Constraints and Challenges on the Progress of Women Entrepreneurs in the Colombo District in
Sri Lanka. International Journal of Multidisciplinary Research and Growth Evaluation. 4 (1).
23 ILO. 2024. The Gender Pay Gap in Sri Lanka: A Statistical Review with Policy Implications. Colombo.
24 . Madushika and . Samaraweera. 2025. Does Gender-Based Occupational Segregation Affect Employees’ Earnings and Labor Supply in
Sri Lanka? Sri Lankan Journal of Business Economics. 14 (I).
25 Now renamed as Ministry of Women and Child Affairs (MWCA).
26 Government of Sri Lanka. 2024. National Policy on Gender Equality and Women’s Empowerment. Ministry of Women and Child Affairs.
27 Government of Sri Lanka. 2024. Women’s Empowerment Act, No. 37, 2024.
those dominated by women. A higher education level increased
wages in male-dominated professions, but it did not increase
workers’ salaries in female-dominated
ENABLING LEGAL AND
POLICY FRAMEWORK
Sri Lanka’s Constitution guarantees equality before the law and
prohibits discrimination based on sex, race, religion, language, or
caste. Sri Lanka is a signatory to the Convention on the Elimination
of Discrimination Against Women. In March 2023, the Ministry
of Women, Child Affairs, and Social Empowerment (MWCASE)25
introduced the National Policy on Gender Equality and Women’s
Empowerment to promote equal rights across all sectors and
combat violence against Sri Lanka also enacted
the Women’s Empowerment Act in 2024 to reinforce gender
equality and women’s However, while challenges to the
implementation of gender equality measures can be observed,
they are linked to the availability of sufficient resources.
Employment-Related Policies on Gender Equality
Sri Lanka’s Constitution bans employment discrimination and wage
inequality based on sex and other factors. The National Policy
on Gender Equality and Women’s Empowerment sets objectives
to boost women’s workforce participation, ensure equal pay,
recognize unpaid care work, and improve women’s access to skills
Figure 9: Male and Female Employment Status (%)
0
20
40
60
80
100
Public sector
employee
Private sector
employee
Employer Own-account
worker
Contributing
family worker
Men Women
Source: Government of Sri Lanka. 2025. Sri Lanka Labour Force Survey 2024. Department of Census and Statistics.
ADB BRIEFS NO. 389
8
28 ILO. 2025. Sri Lanka Takes First Step Toward Formalizing Domestic Work on World Social Justice Day. February 20. Colombo.
29 ILO. 2025. How to Improve Female Labor Force Participation in Sri Lanka.
30 ILO. 2023. The Care Economy and Decent Work in Sri Lanka: Opportunities, Challenges and Future Trends.
31 Parliament of Sri Lanka. 2025. 500 Million Rupees Allocated by This Year’s Budget to the 379 Child Care Centers Across Sri Lanka – Minister of Women and Child
Affairs. As of 22 February 2025, the Sri Lanka rupee (SLRe)–United States dollar ($) exchange rate was SLRe1 = $ (Oanda Currency Converter).
training and digital innovations. It also seeks to enhance social
security for women in both formal and informal sectors, such as
estate, migrant domestic, and home-based workers. In addition,
Sri Lanka is improving conditions for domestic workers, including
creating a standard employment
However, labor laws do not explicitly prohibit gender discrimination
or ensure equal pay for equal work of value. Specific provisions
restrict women’s night work and overtime, which may discourage
employers from hiring women. Domestic work, done mainly by
women, is still not fully covered by labor While
the Women’s Empowerment Act is committed to reviewing
employment laws to remove discriminatory provisions and
reinforce gender equality inemployment, this mandate is under
the National Commission on Women, which has not yet been
launched (footnote 28).
Box 1 presents legislation on maternity and parental benefits
in Sri Lanka, while Box 2 presents policies on women’s
enterprise development.
Policies on Care Services and Systems
Sri Lanka has a national preprimary childcare system for children
aged 3 and above and has introduced policies and other measures
to improve the quality of In 2025, Sri Lanka budgeted
Sri Lanka rupees (SLRs) 500 million ($ million) for 379 day care
centers across the country, with support of SLRs30,000 ($100)
for each While an important step, the subsidized facilities
Box 1: Legislation on Maternity and Parental Benefits
Sri Lanka provides 84 days of paid maternity leave under
two labor laws, including employer-paid benefits and two
breastfeeding breaks of at least 60 minutes. While supportive,
these benefits fall short of the World Health Organization
recommendation of at least 14–18 weeks for maternal and
infant
Laws do not guarantee job protection post-maternity, infringing
on women’s rights. The International Labour Organization
advocates for maternity benefits through social insurance
covering all women, including the self-employed, to reduce
discrimination in Sri Lanka has a provident fund and
intends to expand it to include maternity benefits, but planning
is pending.
The government has committed to introducing new employment
laws covering paternity leave, remote work, flexible schedules,
and other measures to better balance work and
However, these changes are not yet enacted.
a World Health Organization. 2024. Maternity Protection: Compliance
with International Labor Law.
b ILO. 2022. Care at Work Investing in Care Leave and Services for a
More Gender Equal World of Work.
c Government of Sri Lanka. + 30 Review: National Report
of Sri Lanka.
Source: Authors.
Box 2: Policies on Women’s Enterprise Development
Sri Lanka has a National Policy Framework for Small and
Medium-Sized Enterprise (SME) Development (2015) and an
action plan developed in 2016. The policy aims to boost the number
of globally competitive, technology-driven, and sustainable SMEs.
The SME policy and action plan recognize the need to create a better
environment for women’s entrepreneurship and seek to improve
women’s access to business development skills and financing.
The Central Bank of Sri Lanka has adopted a definition of women-led
businesses in order to clarify eligibility for targeted programs and
facilitate banks in collecting gender-disaggregated loans and
other services to In 2024, the government created a
Stimulation Package for Re-energizing the Micro, Small, and Medium
Enterprise Sector in Sri Lanka, which provides loans of SLRs15 million
($50,000) to micro, small, and medium-sized enterprises with less
than SLRs1,000 million ($ million) All women-owned
businesses, including microenterprises, are eligible for the program
as long as they are registered businesses. However, as it is new, data
is not yet available on the extent to which women-owned businesses
have benefited from the loans. Sri Lanka has also adopted the
Women Entrepreneurs Finance Code (WE Finance Code), which
serves as a catalyst to accelerate women’s access to finance and close
the financing gender gap. The Asian Development Bank’s support
has been instrumental in strengthening policies promoting women’s
entrepreneurship in Sri Lanka.
a See Government of Sri Lanka. National Definition for Women owned/ led Business in Sri Lanka Guideline for Gender-wise Classification. Central Bank of Sri Lanka.
A business qualifies as women-owned and/or women-led if 50% or more of the owners are female or 20% or more of the owners are female; it has one
female as a major decision-maker; and for those with a board of directors, at least 30% of those directors are women.
b Government of Sri Lanka. 2024. Stimulation Package for re-energizing the Micro, Small and Medium Enterprise Sector in Sri Lanka. Department of
Development Finance.
Source: Authors.
Enhancing Women’s Labor Force Participation in Sri Lanka
9
may fall short of the demand for childcare spaces, especially in rural
areas. Most preschools are private and charge fees; only the estate
sector and large corporate employers provide creches. National
systems for children under 3 are also lacking. Laws mandate that
older adults be cared for either by their children or the state, but
the long-term care system is not sufficiently developed, and female
family members provide elder
Gender-Responsive Public Transport Policies
Adequate transport is important for women’s employment and
access to job opportunities. Sri Lanka’s transport policy explicitly
addresses women’s mobility and inclusion by stipulating
that transport systems must meet the needs of women, girls,
people with disabilities, and other vulnerable groups, and that
they offer subsidized transport fares. However, a comparative
analysis of gender in transport in South Asia ranked Sri Lanka’s
national transport as low on the gender inclusion scale. Despite
setting goals for gender equality in transport, few measures
have been implemented. Additionally, Sri Lanka has taken only
initial steps to integrate gender considerations into stakeholder
consultations on transport design and in the evaluation
of transport
Policies on Sexual Harassment
and Gender-Based Violence
Sri Lanka’s Penal Code Section 345 criminalizes sexual
harassment, which is defined as “Unwelcome sexual advances by
words or action used by a person in authority, in a working place or
any other place, shall constitute the offence of sexual harassment”.34
The Multi-Sectoral National Action Plan to Address Sexual and
Gender-Based Violence (SGBV) in Sri Lanka – II (2024–2028)
outlines a comprehensive strategy to eliminate violence against
women, men, girls, boys, and gender minorities. It sets out
measures to prevent SGBV through awareness campaigns
and education, provide support and services to survivors, and
strengthen legal frameworks and law enforcement to address
Section 345 of the Penal Code was recently strengthened
to criminalize digital and online harassment.
Still, the Penal Code definition of sexual harassment lacks a clear
definition of all behaviors that constitute sexual harassment.
The existing sexual harassment provision in the Penal Code
punishes individual acts and could mention employers’ liability
for ensuring a safe, harassment-free work environment. The
Employment Law does not mandate employers to have sexual
harassment policies and grievance redress mechanisms. The
Industrial Act No. 43 of 1950 provides for the prevention,
32 ADB. 2021. Country Diagnostic Study on Long-Term Care in Sri Lanka.
33 A. Sil and S. Chowdhury. 2025. Do They Hear Us? A Practical Framework for Designing Gender Inclusive Transport Policies in South and Southeast Asian
Countries. Journal of Transport Geography. No. 127.
34 Verité Research. 2023. Sexual Harassment at the Workplace Overcoming Barriers to Justice.
35 Government of Sri Lanka. MWCASE. 2024. Multi-Sectoral National Action Plan to Address Sexual and Gender-Based Violence (SGBV) in Sri Lanka – II (2024-2028).
36 United Nations Population Fund (UNFPA). 2018. Does She Feel Safe: Report on Sexual Harassment in Public Transport in Sri Lanka.
37 World Health Organization. 2024. Maternity Protection: Compliance with International Labor Law.
38 J. Solotaroff et al. 2020. Getting to Work Unlocking Women’s Potential in Sri Lanka’s Labor Force. World Bank Group.
39 S. Sosale et al. 2024. Enhancing Skills in Sri Lanka for Inclusion, Recovery, and Resilience. World Bank Group.
investigation, and settlement of industrial disputes, which can
include sexual harassment. However, sexual harassment is
not specifically mentioned in the Act. Sexual harassment in
public spaces, such as public transit, is not specifically defined
or
CHALLENGES OF INCREASING FEMALE
LABOR PARTICIPATION IN SRI LANKA
Analysis of the national labor policy framework and the
data on FLFPR points to several key issues to consider in
Sri Lanka’s efforts to boost women’s labor force participation
for economic growth.
(i) Women’s unpaid care responsibilities remain an important
factor in their participation in the labor market. As the
analysis of the data demonstrates, women of working age
are close to three-quarters (71%) of Sri Lanka’s economically
inactive population. Unpaid care work is among the main
reasons women cite for being economically inactive, making
it the primary reason for being out of the workforce. While
engaging in housework is the reason for 59% of working-age
women to be economically inactive, only 5% of economically
inactive men give this reason according to the national data
(footnote 11). The percentage of working-age women out of
the workforce due to unpaid care in Sri Lanka is higher than
the global average of 45%.37
The overrepresentation of women in providing unpaid
care is associated with deeply rooted social norms and
cultural practices that expect women to prioritize family
responsibilities over paid work. Conversely, men are
expected to focus on paid Sri Lankan women
often limit their job search to jobs that do not require long
distances or extended hours to balance with unpaid care
work
(ii) Occupational gender segregation affects human capital
allocation and perpetuates gender inequality in the labor
market. Sri Lanka’s labor force profile reveals that specific
industries, such as construction, are male-dominated,
while others, such as manufacturing, are female-dominated.
This employment segregation contributes to the gender
pay gap. A study on occupational segregation in Sri Lanka
found that employees in male-dominated occupations
earn more as their education, experience, and work
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hours increase. In contrast, these factors do not affect
earnings in female-dominated occupations (footnote 24).
Gender-based segregation also disadvantages employed
women’s access to employment during economic shifts.
A study of economic trends and employment levels across
developing countries found that FLFPR is most influenced
by how major economic shifts reduce labor demand in
female-dominated
(iii) Social and gender norms often drive gender-based
employment segregation. Gender-based stereotypes about
acceptable forms of employment and a lack of information
about available opportunities are considered to prevent
women from entering the sector despite an increasing
labor Gender norms can cause students and job
seekers to internalize ideas about suitable fields based on
social acceptability and current occupational patterns, such
as caring professions being female roles, while technology is
more appropriate for men (footnote 38). In 2023, as much
as 75% of university admissions to allied health sciences
(nursing, pharmacy) were for female students. In comparison,
female students comprised 43% of computer science
admissions and 27% of engineering The
prevalence of gender-based occupational patterns negatively
affects women’s career advancement, as high-paying
fields and senior positions tend to be male-dominated.
In this respect, evidence shows that women comprise
80% of Sri Lanka’s garment workforce, but mainly hold
low-skilled jobs and are underrepresented in leadership.
Occupational segregation, like the absence of women in
senior roles, can impact innovation and
A study by the International Finance Corporation (IFC)
and Australia’s Department of Foreign Affairs and Trade
on Sri Lanka’s largest companies found that those with
more gender-diverse boards generally perform better
on key financial Despite this, women remain
underrepresented in higher-level positions.
(iv) Women’s educational attainment is often not fully
reflected in labor market outcomes. Research on
the demand for female labor reveals that employers in
female-dominated sectors prefer higher-skilled women
when filling jobs, even when the work is below their skill
level (footnote 15). This finding may explain why the share
of women with higher levels of education is increasing,
compared to those with lower levels. In contrast, women
with middle-level education (GCE Ordinary Level)
had difficulty finding quality jobs to match their skill
level, especially in regional labor markets (footnote 16).
40 S. Klasen. 2019. What Explains Uneven Female Labor Force Participation Levels and Trends in Developing Countries? The World Bank Research Observer.
41 United Nations Economic and Social Commission for Asia and the Pacific. 2022. Mind the Gender Gap in Workforce, Including Transport and Logistics:
The Perspective from Sri Lanka and Beyond.
42 Sri Lanka University Grants Commission. 2023. University Admissions.
43 Better Work. 2023. Closing Gender Gap: GEAR Drives Progress for Women in Sri Lanka Apparel Industry.
44 International Finance Corporation (IFC). 2019. Realizing Sustainability Through Diversity: The Case for Gender Diversity Among Sri Lanka’s Business Leadership.
45 World Bank. 2018. Sri Lanka can Boost its Development by Investing in Early Childhood Education.
As also borne out by global research, studies in Sri
Lanka reveal that women gain fewer returns from higher
education than men in terms of stable employment, career
advancement, and wages (footnote 24).
(v) Women entrepreneurs navigate challenges that impact
their opportunity to grow and scale their businesses.
Women face greater obstacles in starting their businesses
due to limited access to capital, less exposure to business
networks, the competing demands of unpaid care work,
and a lack of confidence in their business ideas. Despite
impactful initiatives such as targeting women-owned
businesses in credit programs for micro, small, and
medium-sized enterprises, a comprehensive strategy is
not in place to provide business development support to
women to start a business or grow their microenterprises
into small and medium-sized businesses.
(vi) National planning to address paid and unpaid care work
is still in its early stages. Women’s unpaid care work is a
vital contribution to the economy that is not captured in
economic indicators, making it less visible to policymakers.
The invisibility of women’s time on unpaid work results in an
undervaluation of the benefits of public investments in care
services, such as childcare and long-term care. Sri Lanka’s
public investment in early childhood education is lower than
in other lower-middle-income No plan exists
for public financing of services for individuals requiring
long-term care. As the population ages, the demand for
care work will rise, putting additional pressure on women’s
time (footnote 32).
(vii) Perceived constraints over women’s availability due
to unpaid care duties and mobility issues may lead
to gender discrimination in hiring. Research on the
demand for female labor found that gender biases
influenced hiring decisions and that preferences for female
workers varied by sector. Tea and tourism employers
believed women outperform men; the information and
communication technology and agriculture sectors
thought the opposite. Finance, banking, and real estate
saw women as equally qualified, while manufacturing
preferred women for low-skilled roles and men for
higher-skilled roles. However, across all sectors, employers
cited concerns about absenteeism from family duties,
higher turnover, night work restrictions, and transportation
issues as reasons for preferring to hire men over women
(footnote 15).
Enhancing Women’s Labor Force Participation in Sri Lanka
11
(viii) Access to safe and reliable public transportation
remains an important factor in women and girls’ access
to economic and educational opportunities. Ensuring
women have access to safe, reliable transit to access paid
work is vital for their workforce participation. Although
some initiatives aim to improve access, Sri Lanka lacks a
comprehensive framework to address sexual harassment
on public transit and strengthen prevention and
response mechanisms. Transport authorities have limited
gender-responsive planning capacity, and gender-specific
travel patterns are not systematically
(ix) Existing employment policies may not fully address
gender disparities in access to economic opportunities.
Employment laws provide limited options for balancing paid
and unpaid care work. The existing norm for the length of
maternity leave is shorter than international good practice and
is often part of the mandatory employment social insurance.
The lack of measures such as paternity leave, extended
parental leave, elder care leave, and flexible work arrangements
means limited options exist to balance work and family
responsibilities. The gendered structure of unpaid care means
that women are more likely to drop out of the workforce when
unpaid care demands increase (footnote 36).
(x) Violence against women affects women’s participation
in the workforce. In 2019, the United Nations Population
Fund found that nearly one in five ever-married women
in Sri Lanka had experienced sexual or physical violence
from an intimate partner, 27% faced psychological violence,
and 18% encountered economic violence. Women facing
intimate partner violence suffer consequences that
can undermine their well-being, dignity, and autonomy.
Women experiencing controlling behavior are limited in
their mobility and independence to seek employment
and manage their finances. Intimate partner violence has
economic consequences as survivors must take time off
work due to injuries or stress. 47
An IFC study of private companies in Sri Lanka found
that three out of five employees surveyed experienced
bullying or harassment, with women with disabilities being
the most A survey by the United Nations
Population Fund of 2,500 women aged 15–35 across all of
Sri Lanka’s nine provinces found that 90% had experienced
sexual harassment on buses and trains at least once in their
lives, and for 37%, this harassment on transportation affected
their work performance (footnote 45). In addition, women
and girls make up the majority of domestic workers, a sector
that is currently unregulated and can expose them to risks of
sexual exploitation (footnote 16).
46 Government of Sri Lanka. MWCASE. 2024. Multi-Sectoral National Action Plan to Address Sexual and Gender-Based Violence (SGBV) in Sri Lanka – II
(2024–2028).
47 UNFPA. 2019. Women’s Well-Being Survey. Colombo.
48 International Finance Corporation. 2022. Business Case for Creating Respectful Workplaces in Sri Lanka.
PROMISING PRACTICES
Sri Lanka Practices
Sri Lanka has launched programs, with support from development
partners, to improve the conditions for women’s employment and
enterprise development:
(i) Promoting women’s enterprise development. Sri Lanka
is one of the first countries to pilot the WE Finance
Code, in partnership with ADB. The WE Finance Code
is focused on creating a supportive policy and regulatory
environment for women-led businesses and banks
committing to changing policies and practices, promoting
private sector engagement, and leveraging data to improve
financial access.
(ii) Inclusive skills development in growth sectors.
Supported by the Australian Government, Sri Lanka’s
Skills for Inclusive Growth program fosters collaboration
between vocational education institutions and the tourism
sector to address skills shortages. The program employs
innovative training methods, on-the-job mentorship,
and outreach efforts targeted at women and people
with disabilities. A culinary competition increased the
appreciation of the value of vocational education and skilled
tourism employment.
(iii) Gender-responsive employment policies in the private
sector. The SheWorks program promotes fair workplaces
and gender-smart initiatives. The program, implemented
in partnership with IFC, resulted in a 12% increase in
women’s employment across 15 private companies
and a significant rise in women in leadership roles and
board positions.
(iv) Improved options for safe transport. The ride-hailing
service PickMe introduced an option that allows women to
request a female driver to increase their sense of safety and
create transport employment for women.
International Practices
Numerous countries address low female labor participation
by improving care services, enhancing public transportation,
promoting skills in male-dominated fields, and supporting
gender equality in procurement. Some examples are
presented in Box 3.
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Box 3: International Good Practices to Boost Women’s Labor Force Participation
Comprehensive Planning and Public Investment
in the Care Economy
• Mexico: Federal Day Care Programme provides subsidized
childcare for low-income families to promote women’s workforce
participation and reduce
• Bangladesh: Launched a Roadmap for Childcare that promotes
a quality childcare system, including training for early childhood
education and care workers to enhance
Access to Safe Transport
• Kazakhstan: Implemented initiatives to hire women bus drivers
and introduce women-only
• Ecuador: Launched “Tell me Kiosks” in Quito’s transit system
for women to report violence or harassment, including sexual
harassment, when using public transportation. Drivers are trained
to assist women experiencing
Encouraging Women in Nontraditional Fields
• Viet Nam: The national electricity authority promotes gender
equality and women’s recruitment. It achieved 10% women in
director roles through mentoring and
• Nepal: Samrakshak Samuha Nepal or SASANE empowers and
trains women trafficking survivors to find employment as tour
and trekking
Gender-Responsive Public Procurement
• Chile: Created an online platform, Mercado Público, which
supports women-owned and/or women-led enterprises to
access public procurement more easily. A registry certifies these
companies. Women-owned businesses now represent 45%
of
a Oxfam. 2018. Unpaid Care: Why and How to Invest: Policy Briefing for National Governments.
b Government of Sri Lanka. 2024. Beijing+ 30 Review: National Report of Sri Lanka.
c The Times of Central Asia. 2024. Why Have Women’s Carriages Become so Popular in Kazakhstan?
d International Finance Corporation. 2020. Addressing Gender-Based Violence and Harassment (GBVH) in the Public Transport Sector.
e UN Women. 2023. Gender Equality in the Sustainable Energy Transition.
f World Sustainable Hospitality Alliance. 2025. Stories from the Awards: World’s Leading Sustainable Female Empowerment Initiative.
g Organisation for Economic Co-operation and Development. 2021. Promoting Gender Equality through Public Procurement: Challenges and Good Practices.
Source: Authors.
RECOMMENDATIONS
Enabling Environment
(i) Integrate gender considerations into economic
growth strategy development. Sri Lanka could include
gender-based analysis as a fundamental part of its economic
development planning. Development partners could assist
Sri Lankan policymakers in improving their ability to collect
and analyze gender and ethnic disaggregated data on the
labor force, entrepreneurship, household economics, and
time use to inform economic strategies at the national or
regional level. Offering technical support for evaluating how
economic growth strategies have differential impacts on
women, men, and different ethnic groups could help create
workforce development plans that boost women’s labor
force participation.
(ii) Amend labor laws to ensure women’s equitable access
to paid employment. Sri Lanka could review employment
laws, including the Shop and Office Employees Act
of 1954, the Employment of Women, Young Persons
and Children Act No. 47 of 1956, and the Factories
Ordinance of 1942 to ensure their alignment
with the country’s commitment to gender equality
(footnote 29). At a minimum, they should be amended
to remove any restrictions on night work, overtime, or
other employment conditions based on sex. Additionally,
legislation to promote equal pay for work of equal value can
be introduced with an effective enforcement mechanism
to ensure implementation.
(iii) Learn from labor law provisions that promote better
balance between work and family responsibilities.
Sri Lanka could review international practices for labor
laws that facilitate the sharing of duties between women
and men for paid and unpaid care work, including paid
and unpaid paternity and parental leave, parental leave for
adoptive parents, arrangements for flexible work hours,
and other measures that facilitate balancing paid work
and unpaid care responsibilities. Public awareness-raising
campaigns that promote attitudes favorable to women and
men sharing responsibilities for paid and unpaid care work is
also needed.
(iv) Strengthen laws and develop education programs to
combat sexual harassment in the workplace. Sri Lanka
could accelerate actions to improve women’s protection
from sexual harassment in the workplace, public transit, and
other spaces. This can be possible through strengthening the
implementation of laws related to violence and harassment,
as well as education campaigns for both employees and
employers on mechanisms for addressing sexual harassment
at the workplace.
(v) Establish a national maternity benefit program with
mandatory contributions. Sri Lanka could create a
maternity benefit fund with compulsory employer
Enhancing Women’s Labor Force Participation in Sri Lanka
13
contributions based on workforce size. This fund could be
stand-alone or part of a broader social and health insurance
scheme with contributions from both employers and
employees. It is vital to include informal sector workers and
self-employed individuals.
Investing in Care Economy and Infrastructure
(i) Extend and professionalize the early childhood education
and care (ECEC) system to cover 0–6 years of age in
urban and rural areas. Sri Lanka could prioritize increased
public spending to expand access to ECEC, including for
children under 3 years old. The increased investment could
contribute to creating standards for private sector facilities
and improving training for ECEC workers to ensure high
demand from parents. Subsidies could be designed to ensure
ECEC is affordable to parents in different income categories,
including low-income households.
(ii) Develop a plan to create a long-term care system.
The government could develop policies, establish
regulations, and allocate sufficient public funds to improve
access and quality of extended-term care. The process
could start with studying long-term care systems in other
countries. It could also include consultations with civil
society organizations working with older people and private
sector-run elder care facilities to explore options for building
a unified, affordable long-term care system for different
income segments of the population.
(iii) Prioritize gender-responsive public transport planning
and investments. Sri Lanka’s transport planners are
encouraged to review international best practices for
incorporating gender considerations into transport sector
policymaking and identify strategies to improve women’s
safety, security, and mobility. Increasing public investment
in transit to reduce overcrowding and expanding flexible
transportation options based on gender-specific travel
patterns are also crucial.
(iv) Encourage employers to adopt gender-responsive
workplace policies and support initiatives that promote
female employment. These may include promoting flexible
work practices and gender equality, mentoring and upskilling
of women managers, partnering on apprenticeship and
training programs, setting gender quotas for leadership, and
launching awareness campaigns to challenge social norms
and gender stereotypes.
Access to Skills Development and Career
Guidance Support
(i) Increase access to career guidance and skills training
for women and girls in high-growth sectors. A deeper
gender analysis of how workers at various skill levels
respond to economic changes and the support they
need to adapt is essential to attract more women to
the workforce and ensure they stay. Sri Lanka could
encourage women to enter high-growth employment
sectors in nontraditional fields through scholarships,
mentorship programs, and affirmative action initiatives
to boost women’s participation in areas such as
engineering, small business development, and information
and communication technology, where they are
underrepresented in employment.
(ii) Encourage collaborative partnerships to improve
women’s upskilling amid technological changes. Sri Lanka
has mechanisms like the Human Resource Development
Council to further foster collaboration across vocational
training and education institutions, government, and private
sectors to align education and workforce development
strategies. These could be strengthened by highlighting
technological impacts on female-dominated industries
like manufacturing. Strategies should focus on providing
training to help female workers upgrade their skills, adapt to
new technologies, and remain employed.
Women’s Entrepreneurship
(i) Expand access to gender-responsive business
development training. Sri Lanka could mobilize its finance
sector and development partners to increase the availability
of skills training and incentives for women to start and grow
their businesses.
(ii) Incentivize financial institutions to develop more
gender-responsive products and services. Financial
institutions could be incentivized to design credit products
that match women’s risk tolerance and their limited access
to collateral. These could also include exploring reforms
to collateral registries so movable assets and receivables
can be accepted, addressing a core barrier for women
entrepreneurs. Financial institutions are encouraged to
conduct gender-responsive market research to better
understand women’s time, mobility, and digital access
when designing customer services. Initiatives could include
designing practical fintech solutions (mobile money,
e-wallets, digital credit scoring) in partnership with fintechs
and mobile operators, to target women entrepreneurs,
especially in rural areas.
(iii) Create measures for gender-responsive government
procurement for goods and services. National policies
could revisit procurement procedures and adopt
gender-responsive procurement measures, including
adjusting requirements for bidders, supplying from women
businesses, and other good practices.
