Sri Lanka to amend labor law for IT-BPO sector

COLOMBO, SRI LANKA — Sri Lanka is poised to revise a labor law from 1954 to enable women to work night shifts in the Information Technology (IT) and Business Process Outsourcing (BPO) sectors.
The Attorney General of Sri Lanka recently approved a draft amendment to the Shop and Office Employees Act to abolish the current restrictions on night shifts for women.
A government statement also clarified that this amendment aims to enhance women’s participation in vital economic sectors.
With the proposed changes, women would have the opportunity to engage in night shifts across various domains, including IT firms, knowledge outsourcing companies, and organizations handling administrative, accounting, and technical tasks for foreign businesses.
The Cabinet of Ministers in Sri Lanka sanctioned the publication of this amendment in the government gazette, and it is slated for presentation in Parliament for final ratification.
This initiative marks a significant move towards establishing gender equality in the workplace, particularly in sectors crucial to the nation’s economic development and global commerce.
Earlier this year, Sri Lanka Association for Software Services Companies (SLASSCOM) Director Shanaka Fernando called for reforms in the country’s “outdated” labor laws to enhance the competitiveness of the local IT-BPM market and create a favorable environment for investment and talent retention.
The IT-BPM industry is Sri Lanka’s fourth-largest foreign revenue earner. In 2022, the sector brought US$2.1 billion to the country, employing around 150,000 people, with indirect employment opportunities reaching nearly 250,000.
SLASSCOM is confident that the sector could grow to US$5 billion in export revenue by 2025, capitalizing on key industry trends such as digital marketplaces, metaverses, AI apps, sustainability, and tech democratization.