Major trade unions in Sri Lanka are politicised- U.S.

By Kelum Bandara  

Most major trade unions in Sri Lanka maintain political party affiliations, contributing to a politicised labour environment, a key U. S. report observes.  

In the report published by the U.S. Department of State regarding Sri Lanka’s investment climate, union membership encompasses approximately 9.5 percent of the workforce and continues declining. Sri Lanka hosts over 2,000 registered trade unions, many with fewer than 50 members. About 18 percent of workers in industrial and service sectors belong to unions, it says.   

All workers, except those in police, military, prison service, and designated essential services, possess the right to strike. Union representation is common in large private enterprises but rare in small-scale operations. The tea plantation sector and public sector maintain high unionisation rates, according to it.  

Collective bargaining exists but remains limited in scope. While approximately 25 percent of the Employers’ Federation of Ceylon’s 660 member companies have unionized workforces, only about 90 companies operate under formal collective bargaining agreements. Sri Lankan law prohibits forced and compulsory labor. The National Minimum Wage (last amended March 2024) sets monthly minimums at Rs. 17,500 (approximately $57) and daily rates at Rs. 700 (approximately $2.10). 

Child labor prohibitions effectively eliminate the practice in formal sectors, though violations occur within the informal economy. Sri Lanka has ratified 31 international labor conventions, including all eight core labor standards. A 2021 national survey found that 62 percent of workers participate in the informal economy, mostly as self-employed individuals in agriculture, the report observes.