📊 Sri Lanka Approves Performance-Based Framework for SOE Collective Agreements

• Overview: The Cabinet of Ministers has approved a new performance- and sustainability-based framework for collective agreements across State-Owned Enterprises (SOEs), set to take effect from January 1, 2027. • Transition Plan: Existing collective agreements under state enterprises will be extended under their current terms and conditions until December 31, 2026, to allow a seamless transition to the new structure. • Regulatory Alignment: Developed by a Treasury-appointed expert committee after stakeholder consultations, the new framework aligns workplace pacts with key labor regulations, including the Industrial Disputes Act, Trade Unions Ordinance, and Shop and Office Employees Act. • Financial Terms: The recommendations establish a structured framework governing profit-sharing and bonuses tied to performance and financial sustainability across state enterprises.