Regulatory & Policy NewsEconomy-wide / Cross-sector

Government, ILO Review Wage-Setting to Align with Market Conditions 📈

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• Overview: The Ministry of Labour, Department of Labour, employers, and workers collaborated with the International Labour Organisation (ILO) in a three-day workshop (8–10 Sept 2026) to reform Sri Lanka’s wage-setting institutions for better predictability, transparency, and responsiveness to market conditions. • Key Focus Areas: • Grounding wage policies in national evidence, gender responsiveness, and social dialogue. • Learning from evidence-based frameworks in India, Indonesia, and Malaysia. • Building on the 2024 tripartite agreement and the 2025 High-Level Regional Dialogue on Living Wages. • Sector Breakdown & Context: • Crucial for export-driven sectors like tea and apparel & textiles (ready-made garments) to protect worker purchasing power post-high inflation while maintaining global supply chain competitiveness. • Aims to align adequate wages with higher productivity to attract responsible investment and expand ethical exports.

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