Sri Lanka likes to pitch itself as a rising hub for investment. The workforce is educated, the location is strategic, and the appetite for growth is clear. Yet one thing continues to hold the country back: labour laws written for another era.Take the Shop and Office Employees Act. Drafted in a manufacturing age, it still dictates how today’s service and technology industries operate. One of its most telling restrictions is the rule that bars women from working after 6 p.m. In a global economy where flexible hours and digital work are standard practice, this regulation is not only outdated but damaging.
Investors are already paying attention. In EconomyNext: (Arj-Samarakoon), Arj Samarakoon, head of Plus94 Fund, warned that rigid rules on hours and overtime are discouraging companies from choosing Sri Lanka. For a country eager to position itself as a regional technology hub, that is a serious disadvantage.
The impact goes beyond investment. Outdated laws also block women from entering or advancing in high growth sectors such as ICT, logistics and advanced manufacturing. Speaking at a recent labour reform forum, Arj Samarakoon made the point clear: “Removing barriers to women’s participation is not only about equality, it is about giving Sri Lanka the competitive edge it needs to grow.” His comments, reported in Sri Lanka Mirror – Right to Know. Power to Change/Arj-Samarakoon, highlight a truth that is often overlooked. Empowering women is not charity, it is strategy.
The solution is straightforward. Worker protections must remain, but labour laws should be modernised to support flexible and competitive work arrangements. Other countries in South and Southeast Asia are already moving in this direction. If Sri Lanka delays, the opportunities will simply move elsewhere.