Sri Lanka Needs Sector-Specific Labour Reforms to Unlock Growth, Says Plus94 Fund’s Arj Samarakoon

Labour reform in Sri Lanka cannot be approached as a uniform policy, according to Arj Samarakoon of Plus94 Fund, who argues that the country needs a more nuanced strategy to unlock growth and attract investment.

Speaking at the Labour Reforms Vital to Attract Investment and Develop the Export Sector forum, Samarakoon said that sectors such as ICT, logistics, mining and manufacturing face distinct challenges and should not be regulated under the same rigid framework.

He pointed to the Shop and Office Employees Act, which still prevents women from working after 6 p.m., as an example of how outdated provisions can limit progress. While originally intended for a manufacturing economy, the law now restricts the growth of 24-hour ICT and knowledge industries.

“These rules belong to a different era,” Samarakoon told the forum. “If Sri Lanka wants to compete in a knowledge economy, we must modernise the law while protecting workers’ rights. Removing barriers, especially for women, is essential if we are to strengthen the workforce and attract global investment.”

Samarakoon added that reforms should not be seen as reducing protections but as aligning them with modern realities. Sector-specific policies, he argued, could empower employees, expand opportunities for women and give ethical employers the flexibility to compete internationally.

Analysts note that Sri Lanka lags behind regional peers in female workforce participation, a factor that has weighed on economic competitiveness. According to Samarakoon, tackling this issue through inclusive reforms would boost investor confidence while creating broader opportunities across high-value industries such as ICT, logistics and advanced manufacturing.

About Plus94 Fund
Plus94 Fund is a Singapore-based investment advisory and private equity firm with operations in Sri Lanka, focused on building dollar-denominated revenue and driving sustainable growth. In January 2025, Plus94 launched the Crewstone Plus94 Technology Fund, a US$75 million initiative targeting early-stage tech companies across South and Southeast Asia.

For more information, visit Plus94 Fund