Thursday Nov 06, 2025
Thursday Nov 06, 2025
Thursday, 6 November 2025 06:18 - - {{hitsCtrl.values.hits}}
By Devan Daniel
In what appears to be a break from the past, a consortium of 13 independent labour unions affiliated to the National Labour Advisory Council have come together for the first time to draft proposals for the 2026 Budget which focuses more on labour policy rather than the usual wish-list for benefits and salary increments.
The proposal was submitted to the Government on 13 October. The 2026 Budget will be presented in Parliament this Friday by President and Finance Minister Anura Kumara Disanayake.
“We received an invitation for a discussion with President to present our proposals but it was cancelled in the last minute and we did not hear from his office again,” said Ceylon Bank Employees’ Union (CBEU) Deputy Chairman Anupa Nandula.
He said this speaking at a press conference where representatives from the 13 trade unions were present.
“We like to think it’s because the Government agrees with our recommendation which does not ask the Government to spend on benefits or hand-outs,” he added.
Ceylon Federation of Trade Unions General Secretary Chamindra Perera noted that this was the first time several trade unions had come together to draft proposals for a Budget. “Our focus was purely on labour policy,” he said.
“Since everyone is focused on economic reforms, we felt the need to create proposals that would reform the labour factor market and elevate its importance to that of capital, which is why our 2026 Budget proposals are not about financial benefits but on the policy direction we felt would safeguard the dignity of employees and secure their livelihoods,” Perera said.
JSS Convenor Sunil de Silva offered poignant context to the exercise.
“People have come to expect benefits in every Budget over the years. This year is no different. The weight of expectation is greater this year because people are struggling to make ends meet after the various measures to improve Government revenue were introduced,” de Silva pointed.
“For this reason, the onus in on the Government to clearly set out a policy direction that would ensure labour rights are protected.
“For instance, you can’t have two laws, one for the Colombo Port City and another for the rest of the country. You cannot privatise State institutions that provide important public services.
“We are also against any move to remove the management of the EPF from the Central Bank. People trust the Central Bank despite some of the losses the fund had to endure in the past. We are against any attempt to change the management of the EPF funds,” de Silva said.
Speaking further, Nandula explained that the proposals were policy-driven, focusing on reform and regulation rather than financial demands. “We expect these proposals will be taken in good faith because they are mainly based on policies that need to be implemented, including necessary regulatory measures,” he said.
He noted that unions proposed a comprehensive framework for restructuring State-Owned Enterprises (SOEs) without resorting to privatisation.
“We recognise that markets have changed, and restructuring is needed. But restructuring does not mean closing or selling off public institutions,” he said. “Government ownership must be preserved to ensure that the original purpose of these entities, serving the public interest, is not lost.”
Nandula cited State banks, the Ceylon Electricity Board, Sri Lanka Telecom, and the Ceylon Petroleum Corporation as examples of institutions established in the 1950s and 1960s for essential public functions that remain relevant today.
He added that the unions’ recommendations had been developed after considering issues affecting both formal and informal sector workers, from daily wage earners to university lecturers. “All are part of the working class, whether they earn a low or high salary. Our proposals take into account the realities faced by every segment of that class,” he said.
Among the key proposals, Nandula called for the long-delayed Workers’ Charter, first discussed in the early 1990s to be implemented. He recalled that a draft had existed since around 1994 but was never enacted due to shifting political priorities.
Addressing labour laws, he said reforms must strengthen the position of workers in relation to capital. “If you change labour laws, they must be designed to keep labour strong. Otherwise, these reforms won’t deliver justice or stability,” he stated.
He also raised concerns about the management of the Employees’ Provident Fund (EPF), describing it as South Asia’s largest worker-based fund, and urged closer monitoring and correction of discrepancies.
In addition, the union consortium had discussed ratifying ILO Conventions 189 and 190 on workplace and domestic harassment, as well as introducing safeguards for task-based and gig workers, a rapidly growing category in the country.
“We have also examined issues in the estate sector, where companies report profits while workers remain in severe hardship,” Nandula said.
He said the unions’ proposals would not burden public finances but instead provide a structured approach to protecting workers and strengthening institutions. “These are not costly proposals,” he said. “They just need to be streamlined and properly placed.”
The 18 proposals submitted by the unions include calls to restructure rather than privatise State-Owned Enterprises (SOEs), introduce a long-delayed Labour Charter, and reform the Employees’ Provident Fund (EPF) to strengthen transparency and remove unfair taxes.
The unions have urged forensic audits across major SOEs, including State banks, Sri Lanka Telecom, the Ceylon Petroleum Corporation, and the Ceylon Electricity Board, to ensure accountability and better management while keeping them in public ownership.
They also reiterated that labour law reforms should prioritise worker protection, not deregulation, and be applied uniformly across all regions, without separate frameworks such as those for the Colombo Port City.
On social protection, the unions proposed a new welfare and insurance scheme for gig and app-based workers funded by a Rs. 1 levy on each transaction, offering benefits such as health, accident, and life insurance, and pensions.
Other proposals include establishing ILO Convention Monitoring Centres to ensure compliance with international labour standards, expanding social security for informal and care workers, and introducing a contributory unemployment benefit scheme for the private sector.
The unions also pressed for the settlement of unpaid provident fund dues to state plantation employees, merging loss-making plantation firms under one state entity, and converting the National Institute of Plantation Management into a degree-awarding university.
Additional recommendations focus on improving working conditions in the estate sector by raising wages, granting 10 perches of land to each worker, and upgrading housing and schools.
They also proposed abolishing discriminatory taxes on essential goods and services such as sanitary napkins and household electricity for free trade zone workers, while introducing progressive taxation on high incomes and measures to curb illicit financial flows.
Pix by Upul Abayasekara
