In 2017, Sri Lanka had an estimated 497,000 job vacancies. Critical skills mismatches between the qualifications job seekers possess, and the expectations of employers, have left key industries like tourism feeling the pinch. With the country currently reporting high rates of youth unemployment, the figures underlined the importance of the reform agenda in Sri Lanka.
In a discussion held to mark the launch of the World Bank’s latest edition of the Sri Lanka Development Update [SLDU], panellists noted that when it came to job creation, the island was grappling with complex and interlinked challenges that spanned the spectrum from education to legislation. As technology forced rapid evolution in the world of work, youth would drive change.
“We need youths to be at the forefront of creating jobs…We need them to push policy makers, the private sector and the public sector to lift hurdles in their way so they can get on with being tomorrow’s employers and innovators,” said Dr. Idah Z. Pswarayi-Riddihough, World Bank Country Director for Sri Lanka and the Maldives.
As Sri Lanka strove to increase its exports, the island’s workforce would be thrown into competition with global players. Ralph Van Doorn, senior economist and one of the author’s of the SLDU said: “We think that the job agenda is the competitiveness agenda – if you become more competitive, you will create more and better jobs.”
Below are highlights from the hour-long panel discussion, moderated by economist Kithmina Hewage.
Realising the potential of women and youth
The SLDU notes that Sri Lanka needs to create jobs opportunities appropriate for its labor force, in particular for youth and women. In 2017, the unemployment rate for those between 15 – 24 years old stood at 18.5 percent – as compared to just 0.9 percent for those aged 40 and over. Among all age groups, women were more at risk of unemployment than men.
“The way our tertiary system is structured now, it cannot react to fast enough to changes in the markets. We need to figure out models which can help us produce graduates demanded by the market,” said Dr. Nisha Arunatilake, Director of Research at the Institute for Policy Studies, sharing her conviction that finding a role for the private sector would inject resources and drive innovation in the education system. She emphasized that this must be done while ensuring equity and access to education for all.
Prof. Dayantha Wijesekera, former Vice Chancellor of Open University and University of Moratuwa, suggested that by reintroducing once popular apprenticeship schemes and making course admission criteria more flexible, universities could better support students willing to add new skills and knowledge to their resumes. “We should have more and innovative methods of attracting youth to the already adequate facilities for vocational training, rather than spending more money on infrastructure,” he added.
While such reforms would help young people across the board, more needed to be done to ensure women joined the workforce. The expansion of quality subsidised or community-funded childcare is critical, said Ganeshan Wignaraja, Chair of the Global Economy Programme at the Lakshman Kadirgamar Centre. He added that the level of harassment women faced on public transport and in the workplace was shocking and called for a strong, well-considered response from the state and from employers.
Addressing the legal and policy constraints creating bottlenecks
Critical to creating confidence in foreign investors and improving Sri Lanka’s business environment will be updating Sri Lanka’s labour laws. “Reform to the labour law is essential,” Ayomi Fernando, Industrial Relations Advisor for the Employers Federation of Ceylon noted, adding that efforts have long been underway to update and simplify the relevant laws, some of which date back to 1950s.
“Quite a few of them pose huge restrictions to employment generation, to people moving jobs,” she said, explaining that investors naturally baulked.
The laws also weren’t made with the modern market in mind – for instance, many local offices must now consider the working hours of colleagues in other timezones, for which no allowances are made. The rising numbers of freelance and part-time workers, and those wishing to work from home were also not addressed, creating challenges for employers and employees both.
Meanwhile, SMEs in Sri Lanka’s large informal sector needed incentives to formalize said Ralph, pointing out this would in turn give them access to institutional support, market linkages and financial backing that could help them grow. Studies estimate that 60 percent of all employed people work in informal work arrangements. Here, reforms could pave the way for extending the protection of labor laws to such employees.
Designing protections for the most vulnerable
One of the fastest ageing countries in the world, Sri Lanka faces a demographic transition that will leave the country with fewer earners and a larger proportion of dependents. Highlighting that pensions were one of the key deciders for job seekers, Ganeshan pointed out that there was a pressing need to create viable alternatives for the private sector, perhaps by allowing reputed private pension providers to set up shop in Sri Lanka. Ralph added that it was important to gradually expand pension coverage and to increase portability of pension schemes to reduce the bias to public sector employment and protect informal sector workers.
The panel agreed that Sri Lanka’s existing social protection programs lack adequate coverage, and need to be better targeted. Currently, upon retirement private sector employees receive inadequate pension benefits, a lump sum payment at retirement or no pension at all. “Pension reform, as we age, will become the number one issue, otherwise I fear the country will face a crisis of old age poverty…” said Ganeshan.
Ayomi cautioned that the gender aspect of the issue should not be ignored: “One real problem that we have with pensions in Sri Lanka is that they are linked to employment, and what we are seeing is that 50 percent of females never work and they are the ones who live longer – they live eight years longer than men – and they are ones who don’t have access to pensions. So pension reforms should delink pensions from employment.”
In the end, the panel agreed that neither the public sector nor the private sector could rescue the economy alone. “We need to build financial literacy and encourage people to plan for their old age,” said Wignaraja. “The state cannot do everything, not in the macroeconomic situation where we are. I think it’s time that people woke up to this reality.”
“Haqeeqi Azaadi” or “Political Invasion”?
You call it a “Long March” or an “Azaadi March” or a “Haqeeqi Azaadi March” and lastly according to some people “Political invasion of the capital”; whatever attempt it may be, the impact of this “Long March” will not be “Short” at all. Seems like history is repeating. Yesterday, it was PTI, later it was TLP, then JUIF, PDM & now again PTI. This reminds us about a Supreme Court’s historic judgment on Faizabad Sit in by Supreme Court, which is quite relevant again in these crucial times. The historic judgment of Supreme Court on Suo moto quotes that “The leaders of the dharna intimidated, hurled threats, abused, provoked and promoted hatred. The media provided unabated coverage. Inflammatory speeches were delivered by irresponsible politicians. Some unscrupulous talk-show hosts incited and provoked citizens.” Isn’t the situation once again similar? Doesn’t it seem like history is repeating? Few analysts consider it to be a worst kind of situation.
Supreme Court writes in its judgment that “the freedom of speech and expression and of the press are fundamental right. However, these rights cannot be used to denigrate or undermine the glory of Islam, security or defence of Pakistan, friendly relations with foreign States, public order, decency or morality or in relation to contempt of court, or commission of or incitement to an offence. He categorically mentions that “PEMRA Ordinance mirrors the restrictions as set out in Article 19 of the Constitution and further prohibits broadcasts which are, “likely to create hatred among the people or is prejudicial to the maintenance of law and order or is likely to disturb public peace and tranquility.” So, Supreme Court has already given clear instructions that if some event is likely to disrupt peace and tranquility, media broadcasts can be prohibited.
Insiders say that we are in a dead end and this is the most crucial time of history for Pakistan, especially when the economic fate has to be decided by IMF on 25th May when Imran khan marches on Islamabad. So let’s playout the possible upcoming scenarios which political stakeholders may have to consider;
- Marching towards Islamabad with huge crowds is one thing but forcing a government to dissolve assemblies with this crowd is another thing. Imran Khan very well knows this is a do or die situation for his political career as well. He knows his March will only succeed if he can force an early election.
- Bringing larger mobs to Islamabad will only be fruitful if there is some kind of disruption by the present government or by the PTI itself. IK knows that a prolonged sit in without happenings in the red zone won’t be impactful.
- PTI leaders have been repeatedly convincing people including government employees, Army officers and police to bring their families in their Haqeeqi Azaadi March. The question which arises is that “Why IK doesn’t bring own family members to join the “Jihad” or “Haqeeqi Azaadi”?
- IMF has to take crucial decision on Pakistan’s economic fate. Without an IMF Package, a Srilanka type scenario may arise. The decision will come on the same date as of long march, on 25th May. This is a do or die situation for Pakistan’s economy. So the leaders of this March should definitely come with a futuristic economic plan and tell the masses how will they get rid of this dire economic situation.
- While Srinagar Highway will be full of Marchers led by the so-called Ambassador of Kashmir, a big decision is expected to come from Srinagar about Yasin Malik. Unfortunately, it is expected that his sentencing maybe announced on 25th May as well.
The government also has limited options. They are arresting leaders of PTI. They are raiding houses in their own panic mode which will further incite the situation. The removal of fuel subsidiary has become inevitable and when it happens it will be the most unpopular decision. Rising, Inflation will cut purchasing power. Finalization of IMF program has brought them to a dead end.
The dread is in the air. 25th May is around the corner. It is Crucial. It is Do or Die for Pakistan. We must fear!!
When Politics turns Personal; The Toxic Allegations & Accusations become a Norm
There is something happening beneath this political turmoil which is NOT looking good!!
Whenever Political landscape turns into a Personal battleground, defeats become unacceptable. These past few days are a perfect case study to see that how Political elite in Pakistan has done whatever it took it to stay in power. In this power grab scenario, there could be numerous losses including the integrity of institutions. We have unfortunately entered into a very dangerous phase, where some political stakeholders have put all stakes at risk, where they have stretched their limits beyond a constitutional limit, all to gather mass support, all to stay in power and avoid defeat. Is it a threat of losing power? Is it a double game? Is it a practical hybrid war we are fighting? Whatever it is, it doesn’t seem to be good. All is at stake, all is at risk and all is toxic.
As if the political temperature was not noxious enough, Shireen Mazari Saga took place. Once again, accusations, allegations and assumptions started pouring in against the state institutions. Soon after her arrest, her daughter, a lawyer herself Imaan Zainab Mazari alleged that her mother was beaten by male police officers during the arrest. But few minutes later, a video clip surfaced that showed clearly that her mother was arrested by Female Police officers in broad daylight and as per the law. Lie number 1 of the daughter stood exposed. Within moments, without any cogent evidence the lady, known for many controversies in the past targeted state institution for such an act, although the anti-corruption already had taken responsibility of her arrest.
Abuse of power can never be tolerated, regardless of who it targets or from where it emanates. This mantra is true and everyone has an equal belief on it but let’s take a deep dive to see that how politics turned dirty in this case, how blame game took place and how this entire episode was used as a tool to churn propaganda against Army leadership and Armed Forces.
1. The anti-corruption police had arrested Shireen Mazari and she herself accepted that Prime Minister and Interior minister were responsible for my arrest. But the mother daughter nexus brazenly started blaming institutions without any solid evidence. Shouldn’t there be an inquiry on this too?
2. PTI was always of the opinion that why courts were opened mid night to send IK packing while he wasn’t listening to anyone however when same court gave a verdict in favor of PTI ex minister, late night, it was celebrated and much appreciated by Shireen Mazari & IK who have been spearheading anti judicial tirade until recently. Isn’t it blatant hypocrisy? Judicial inquiry has been ordered by the Court which is a positive sign, but the serious allegations which Mazari nexus have raised must also be inquired during this newly formed judicial inquiry. Should the Judiciary not question them on hurling these baseless allegations?
3. The present government, whose Police itself arrested Shireen Mazari disowned this attempt. Attorney General displayed his ignorance about the matter in front of the court. So, somehow the government created this impression in the public eye that they are not to be blamed for the arrest of Shireen Mazari. Was it a double game? Or a deliberate effort to discredit institutions?
Pakistan is already facing serious economic downfall, political uncertainty and civil strife. PTI has also announced Long March to Islamabad on 25th May which is likely to further exacerbate already fragile political and economic instability. It has become quite evident now for achieving petty political ends, our political elite has no serious resolve to address the crisis confronting the country. Country is being deliberately pushed to limits of economic and political dead end. The political immaturity and lack of vision to handle the crisis situation is also hurting the repute of institutions amidst internal political wrangling. If political leadership doesn’t come to grips of the critical situation prevailing which is likely to aggravate further in coming days, people of Pakistan in particular and the country in general are likely to suffer unprecedented damage. Political elite must put its acts together and steer the country out of prevalent political and economic crisis by showing sagacity and political wisdom until it’s too late.
Accusations to Acknowledgement: The Battle of Article 63 A
The weather is heating up. As the May is ending, Political temperatures are soaring. The fate regarding the country’s political and economic stability will be measured in the upcoming days. Earlier, PDM built momentum by taking on institutions. Maryam Nawaz raised the temperature by targeting key personalities and institutions. Allegations were bursting against the institutions in all dimensions. Today, we witness reversal of roles. Accusations have been outflowing in every Jalsa by PTI. But now suddenly, the “accusations” turned into “acknowledgment”. “Complaints” started transforming into “Compliments”. Is it the change of narrative? Is it another U-turn? Or is it the restoration of confidence in the institutions? Where will this chaos end?
The Supreme Court’s “decision” or as they say “opinion” or “binding” on Article 63 A has raised some pertinent questions on the status of CM Punjab election? In the interpretation of Article 63 A of the constitution, the Supreme court categorically condemns the practice of horse trading by calling it “a cancer afflicting the body politic”. Supreme Court in its decision of 3-2 rejected the vote count of these dissident members against the party directives. So the future of the Chief Executive of Punjab is now under threat because it is contrary to what happened in National Assembly. The political instability continues and the situation is messy.
In light of this verdict, Hamza has a support of 172 MPAs in Punjab assembly but at the same time, he also has 4 dissenting members which draws the figure to 168. Now further moving ahead, PTI and alliance also has a collective figure of 168 votes minus 21 dissenting members. The situation here in Punjab is way too complex now. A support of 186 members is required for a clear majority in Punjab assembly to formulate a government. This current Punjab government can either fall through a governor led vote of no confidence or a Supreme court order. The governor even has a right to dissolve the assembly with his discretionary powers according to Article 112 (2) of the constitution. Supreme Court has already made its decision on cross voting against Party fiat. Now legal experts are interpreting the decision in their own dictionaries. What will happen in Punjab? What will happen on the federal level? Will there be an election call? If so, what will be the care taker setup? Will there be a fresh mandate? Who will make the hard economic decisions? Lot needs to be answered in these crucial times.
From “My judges disappointed me” to “Thankyou Supreme Court”, a lot has happened and a lot is ready to take place. Islamabad is full of gossips, interpretations, whispers and predictions these days. There is something seething under this political turmoil. The Red zone is under a lot of pressure whether politically or economically. Pre – Elections, Elections and then Post elections, we have a lot of consequences of a lot of hard decisions. But hard decisions need to be taken. Question is who is ready to make the hard choices? Be Afraid!!
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