Tuesday Nov 18, 2025
Tuesday Nov 18, 2025
Tuesday, 18 November 2025 04:00 - - {{hitsCtrl.values.hits}}
The Free Trade Zone Manufacturers' Association (FTZMA) has agreed on a general wage increase of Rs. 3,000 for workers in 2026, following a decision reached by a majority of member companies at a Special General Meeting held on 28 October.
In a notice issued to member firms, the Association said the proposed increase reflects the current economic environment and the cost pressures faced by export manufacturers, while remaining within a level that companies can broadly sustain.
The Board of Investment (BOI) has acknowledged the proposal as modest and reasonable given prevailing economic conditions.
The FTZMA added that while Rs. 3,000 will serve as the recommended minimum adjustment for next year, individual companies may choose to offer higher increases at their own discretion based on financial capacity and operational circumstances.
The general wage increase will apply across companies operating within Sri Lanka’s Free Trade Zones, which employ a significant share of the country’s apparel and manufacturing workforce.
In October, the Cabinet approved the implementation of the National Minimum Wage of Workers (Amendment) Act, No. 11 of 2025, which raised the monthly minimum wage for private sector employees from Rs. 17,500 to Rs. 27,000 with effect from 1 April 2025.
Under the new law, the minimum wage will rise further to Rs. 30,000 from 1 January 2026, aligning with the 2025 Budget proposal to increase private sector pay in parallel with public sector salary adjustments.
The legislation, passed by Parliament on 22 July, also stipulates that the revised wage applies to all statutory payments including the Employees’ Provident Fund (EPF), Employees’ Trust Fund (ETF), overtime, maternity benefits, probationary pay, and holiday entitlements.
The law places responsibility on all employers, including intermediaries and contractors, to comply with the new wage structure. The Commissioner General of Labour has been tasked with enforcing the provisions, with public awareness already underway through official notices and newspaper advertisements.
