Sri Lanka’s labour regulations are once again under scrutiny after policy experts highlighted a key regulatory barrier that may be preventing women from earning additional income through overtime work.
According to analysis from Advocata Institute, certain provisions within Sri Lanka’s labour laws restrict women’s ability to legally work overtime hours, creating a disparity between male and female employees in terms of earning potential.
The policy think tank warns that these restrictions—many of which originate from decades-old labour legislation—may unintentionally limit women’s economic opportunities and contribute to ongoing gender income gaps in the workforce.
Regulatory Barriers Affect Women’s Earning Opportunities
Sri Lanka’s labour framework includes several laws that regulate employment conditions for women, including provisions within the Factories Ordinance, the Shop and Office Employees Act, and other labour regulations.
These laws historically placed restrictions on women’s working hours under the assumption that such limitations would protect female workers. However, modern policy analysts argue that these regulations can now act as barriers to economic participation and income growth.
For example, existing legal provisions restrict the number of hours women are permitted to work each day and week. Women working in many sectors are limited to a maximum of nine hours per day and a standard five-day workweek, while male employees can legally perform additional overtime hours.
Because overtime payments are often calculated at higher rates than regular wages, this difference can significantly affect total monthly earnings.
Disparity Between Male and Female Overtime Opportunities
One of the most controversial aspects of Sri Lanka’s labour regulations is the unequal treatment of overtime opportunities.
Under the current system:
- Male employees can legally perform up to 12 hours of overtime per week in certain sectors.
- Female employees often face restrictions preventing similar overtime work.
This discrepancy means that women who are willing and able to work longer hours may not have the same legal opportunity to increase their income.
Policy researchers argue that this situation effectively limits women’s earning capacity, particularly in industries where overtime work is common.
Historical Laws Still Influence Today’s Workforce
Many of the labour laws affecting women’s working hours date back to legislation introduced in the mid-20th century, including the Factories Ordinance of 1942 and the Employment of Women, Young Persons and Children Act of 1956.
These laws were originally designed to protect workers from exploitation and ensure safe working conditions.
However, analysts say the labour market has evolved significantly since then, with more women now participating in industries such as:
- Manufacturing
- Technology and IT services
- Retail and service sectors
- Global outsourcing industries
In this modern environment, some legal provisions may unintentionally create structural barriers for female employees seeking flexible work arrangements or higher earnings.
Reforms Have Begun — But Challenges Remain
In recent years, Sri Lanka has begun introducing reforms aimed at modernizing labour regulations.
A significant amendment passed in 2024 allowed women aged 18 and above to work outside traditional daytime hours in specific sectors such as information technology, business process outsourcing (BPO), and international service operations.
This reform was widely welcomed by the private sector, especially companies operating in global markets that require round-the-clock services.
However, policy analysts argue that overtime regulations and other employment restrictions still need further review to ensure equal employment opportunities.
Impact on Female Labour Force Participation
Sri Lanka has historically struggled with relatively low female labour force participation compared with many other countries.
Research suggests that only about one-third of working-age women are active participants in the formal workforce, despite high educational attainment levels.
Experts believe regulatory barriers—combined with other challenges such as childcare responsibilities, transportation safety, and workplace discrimination—continue to limit the number of women entering or remaining in the labour market.
Addressing these obstacles could significantly boost economic productivity while improving gender equality in employment.
Policy Experts Call for Labour Law Modernization
The Advocata Institute and other policy groups have recommended a comprehensive review of labour regulations to ensure they reflect modern workplace realities.
Key reform proposals include:
• Updating overtime rules to ensure equal opportunities for men and women
• Recognizing flexible and part-time employment arrangements
• Modernizing workplace safety regulations
• Introducing stronger protections against workplace harassment
Supporters of reform argue that modern labour policies could help unlock the economic potential of Sri Lanka’s female workforce, benefiting both businesses and the broader economy.
Economic Benefits of Greater Female Workforce Participation
Encouraging higher participation by women in the workforce could bring significant economic advantages to Sri Lanka.
Potential benefits include:
- Increased household income levels
- Higher national productivity
- Stronger labour market competitiveness
- Expanded tax revenue for government services
Countries that successfully increase female workforce participation often experience faster economic growth and more resilient labour markets.
For Sri Lanka, addressing regulatory barriers could be a key step toward building a more inclusive and dynamic economy.
Conclusion
Sri Lanka’s labour regulations were originally designed to protect workers, but evolving economic conditions have prompted renewed debate about whether some of these laws now limit opportunities for women.
Policy experts believe that modernizing overtime rules and other employment regulations could help create a more equitable labour market—one where women have equal opportunities to earn, contribute, and advance within the economy.
As discussions continue among policymakers, business leaders, and labour advocates, the issue highlights the importance of aligning labour laws with the realities of a modern workforce.
