Why Sri Lanka’s Economy Cannot Recover Without More Women Joining Workforce

A new report by the Asian Development Bank has warned that Sri Lanka’s economic recovery and long-term development ambitions may remain out of reach unless more women are brought into the workforce. The study, prepared with research and data from the World Bank, the International Labour Organization, UN Women, and Sri Lanka’s Department of Census and Statistics, says the country continues to underutilize a major share of its human capital.

One in Three Women in Workforce

According to the report, only 31.6% of Sri Lankan women participate in the labor force, compared with nearly 72% of men. The gender gap of more than 37 percentage points is among the highest in South Asia. Although women in rural and plantation sectors participate slightly more than those in urban areas, the divide remains widespread across the country. Researchers say the imbalance is not only a gender issue but also a major economic challenge that limits productivity and growth.

Unpaid Care Work Keeps Women at Home

The study identifies unpaid domestic responsibilities as one of the biggest reasons women remain outside paid employment. Women continue to shoulder most childcare, elder care, cooking, and household work, while very few men report domestic duties as a reason for staying out of the labor market. Researchers say deeply rooted social norms continue to define caregiving as a woman’s responsibility and paid employment as a man’s role. These expectations often restrict women’s mobility and force many to seek jobs closer to home or leave employment entirely after marriage or childbirth.

Education Gains Not Translating Into Jobs

Despite strong progress in female education, employment opportunities remain unequal. Women are concentrated in lower-paying sectors such as garments, manufacturing, education, and care services, while men dominate higher-paying industries like construction, transport, engineering, and technology. The report notes that female participation rises sharply among university graduates, but women with lower or middle-level education struggle to find stable work. Researchers also found that women earn less than men across most sectors, with female salaried workers earning around 82% of male earnings on average.

Safety, Transport and Childcare Remain Major Barriers

Unsafe public transport and limited childcare facilities continue to affect women’s access to employment. Surveys cited in the report reveal widespread sexual harassment on buses and trains, with many women saying unsafe travel conditions impact their ability to work or pursue education. Childcare services are also insufficient, particularly for children under the age of three and in rural communities, forcing many mothers to leave the workforce. Existing labor laws, meanwhile, still contain restrictions on women’s night work and overtime, which researchers say may discourage employers from hiring women altogether.

Call for Sweeping Reforms

The ADB report calls for major reforms to improve women’s economic participation. Recommendations include expanding childcare and elder-care systems, improving public transport safety, introducing flexible work arrangements, strengthening protections against workplace harassment, and improving women’s access to technical training and financial services. The report also urges policymakers to encourage women’s participation in high-growth sectors such as engineering, information technology, and entrepreneurship. Researchers conclude that increasing female labor force participation is essential not only for gender equality but also for Sri Lanka’s broader economic transformation and recovery.