Sri Lanka’s government, employers and workers are collaborating with the International Labour Organization (ILO) to strengthen the country’s wage-setting institutions, so they remain responsive to the needs of workers and enterprises as well as to changing economic and labour market conditions.

Issuing a statement it said that a three-day workshop organized by the Ministry of Labour and the Department of Labour in partnership with the ILO reviewed Sri Lanka's existing wage-setting institutions and practices.

It also identified practical priorities to strengthen them through evidence-based approaches and social dialogue in line with national circumstances were also identified.  

Taking place from 8–10 September 2026, the event brought together representatives of government, employers' and workers' organizations, with members of the Labour Law Reform Committee, academia and technical experts from the ILO, according to the statement.

Opening the workshop, S. M. Piyatissa, Secretary, Ministry of Labour said, “As Sri Lanka moves forward, adequate wages, higher productivity and sustainable enterprises should progress together and reinforce one another. Strong labour practices can also strengthen our position in global supply chains and support Sri Lanka's ambition to attract responsible investment and expand ethical, high-value exports.”

Joni Simpson, Director of the ILO Country Office for Sri Lanka and the Maldives said, “Effective wage policies need to be grounded in national circumstances, informed by reliable evidence and shaped through meaningful dialogue among governments, employers and workers. They should also be gender-responsive, helping to address pay inequalities and advance equal remuneration for work of equal value. The ILO's role is to support this nationally owned process.”

During the event, participants examined principles contained in ILO’s international labour standards dealing with minimum wage setting, the statement said. 

Discussions addressed the needs of workers and their families, relevant economic factors, wage and labour market trends, collective bargaining, implementation and compliance. Experiences from India, Indonesia and Malaysia also provided international perspectives on evidence-based wage-setting.

The workshop built on the ILO's 2024 tripartite agreement on living wages and the 2025 High-Level Regional Dialogue on Living Wages held in Colombo.

For Sri Lanka, the discussions are particularly relevant to export-oriented sectors such as tea and ready-made garments, where collective bargaining and social dialogue can help support sustainable wage outcomes while maintaining competitiveness in global supply chains, the statement said.

The discussions also come as Sri Lanka continues its economic recovery following a period of exceptionally high inflation that significantly affected workers’ purchasing power and placed pressure on enterprises, it added.

“Sri Lanka’s recent economic experience has demonstrated why wage-setting institutions need to be transparent, predictable and able to respond to changing economic and labour market conditions,” said Anoop Satpathy, ILO Wage Specialist.

“Reliable data, sound analysis and effective social dialogue are critical to achieving wage outcomes that consider both the needs of workers and their families and economic factors,” he added.