FINANCIAL CHRONICLE — Sri Lanka is set to implement a new labor code by the end of 2026, which aims to replace outdated regulations and transition the nation from a history marked by industrial conflict to a model focused on productivity, as stated by Labour Minister Anil Jayantha Fernando.
An expert committee appointed by the cabinet is currently working on consolidating and modernizing existing labor laws into a cohesive legal framework. A draft of this framework will soon be made available for public and expert feedback, Jayantha announced during the unveiling of the National Export Development Plan for 2026-2030.
This new regulatory framework aims to overcome decades of strained labor relations, according to the Minister. “We have experienced a history of tension and conflict in our industrial relations,” Jayantha remarked. “The goal of these labor reforms is to foster a supportive and harmonious work environment across all sectors.”
The government plans to complement these legal changes with systematic educational initiatives to ensure that the workforce aligns with national export objectives, alongside a push for digital transformation to lower production costs.
This reform initiative comes as the government seeks to reposition Sri Lanka’s economy by emphasizing human capital over natural resources, in order to gain a competitive advantage in international markets. Fernando noted that traditional competitive elements such as raw materials and technology can be acquired globally, thereby making human talent and labor efficiency the primary drivers for the nation’s economic growth.
The forthcoming labor laws will adhere to international standards. This proposed labor code is expected to be a central component of the Export Development Board’s (EDB) five-year strategic plan aimed at integrating Sri Lanka into global supply chains. (Colombo/Jun17/2026)
