Gendered Impacts of

COVID-19 on Employment in
the Private Sector, Sri Lanka
 ABOUT IFC IFC does not guarantee the accuracy, reliability,
IFC—a member of the World Bank Group—is the largest or completeness of the content included in
global development institution focused on the private this work, or for the conclusions or judgments
sector in emerging markets. We work in more than 100 described herein, and accepts no responsibility
countries, using our capital, expertise, and influence or liability for any omissions or errors (including,
to create markets and opportunities in developing without limitation, typographical errors and
countries. In fiscal year 2020, we invested $22 billion in technical errors) in the content whatsoever or
private companies and financial institutions in developing for reliance thereon. The boundaries, colors,
countries, leveraging the power of the private sector to denominations, and other information shown
end extreme poverty and boost shared prosperity. For on any map in this work do not imply any
more information, visit www.ifc.org. judgement on the part of the World Bank Group
concerning the legal status of any territory
ABOUT IFC’S WOMEN IN WORK PROGRAM IN SRI LANKA or the endorsement or acceptance of such
Women in Work (WiW) is a five-year, $11.5 million initiative boundaries. The findings, interpretations, and
launched in partnership with the Australian government conclusions expressed in this volume do not
in April 2017. It is IFC’s largest, standalone country-based necessarily reflect the views of the Executive
gender program designed to close gender gaps in the Directors of the World Bank Group or the
private sector while improving business performance. The governments they represent. The contents of
program, which benefits from multisector program design this work are intended for general informational
and works closely with the World Bank on research, tackles purposes only and are not intended to constitute
women’s access to jobs and assets at the same time. It aims legal, securities, or investment advice, an
to increase women’s workforce participation in Sri Lanka’s opinion regarding the appropriateness of any
private sector, create more and better jobs for women, investment, or a solicitation of any type.
and has the potential to increase profits and drive overall
economic growth. WiW also contributes to the vision of IFC or its affiliates may have an investment in,
the government of Sri Lanka where all citizens can achieve provide other advice or services to, or otherwise
higher incomes and better standards of living by 2025. have a financial interest in, certain of the
companies and parties (including named herein).

All other queries on rights and licenses, including

DISCLAIMER subsidiary rights, should be addressed to IFC
© International Finance Corporation 2020. All rights reserved. Communications, 2121 Pennsylvania Avenue,
2121 Pennsylvania Avenue, N.W. N.W., Washington, D.C. 20433. International
Washington, D.C. 20433 Finance Corporation is an international
Internet: www.ifc.org organization established by Articles of
Agreement among its member countries, and
a member of the World Bank Group. All names,
The material in this work is copyrighted. Copying and/or logos and trademarks are the property of IFC and
transmitting portions or all of this work without permission you may not use any of such materials for any
may be a violation of applicable law. IFC encourages purpose without the express written consent
dissemination of its work and will normally grant of IFC. Additionally, “International Finance
permission to reproduce portions of the work promptly, Corporation” and “IFC” are registered trademarks
and when the reproduction is for educational and non- of IFC and are protected under international law.
commercial purposes, without a fee, subject to such
attributions and notices as we may reasonably require. October 2020

2 |
Executive Summary
This briefing note presents a snapshot of the gender dimensions of the impacts of the COVID-19 pandemic on employment
in Sri Lanka. Research was conducted with employees and HR managers from 15 leading companies across a range of sectors.
Collectively these companies employ more than 140,000 employees, including approximately 85,000 women. Key findings
include the following:

Workers from across all sectors experienced to report increased hours, but reported the same
negative financial impacts due to COVID-19 with result as men in terms of increased responsibility.
almost two-thirds of respondents reporting at least This shows some female senior managers shouldered
one impact of COVID-19 on their ability to meet additional workloads during COVID-19 without the
personal and family financial obligations. commensurate increase in responsibility enjoyed by
their male peers.
• Almost one-third of employees experienced a
reduction in salary, and almost 40 percent had their Workers reported significant impacts on
benefits reduced. productivity due to COVID-19, with important
differences among women and men:
• Over 40 percent of workers may need to supplement
their income, one-third believe they will need to up- • Almost one-third of workers reported they were
skill or retrain in a new area, and around 20 percent are less productive during the previous three months
concerned about possible job-loss. compared to pre-COVID-19, with men more likely
to have reported reduced levels of productivity than
• Over one in five married women and one in six women. Conversely, women were more likely to have
married men anticipate their spouse will seek new reported increased productivity than men – over
income-earning opportunities to make up for the three-quarters of women reported the same or an
overall reduction in family income. increased level of productivity during COVID-19,
compared to just over one-third of men. Some
• Forty-two percent of women and 37 percent of men reasons given included being able to better manage
reported challenges meeting utility bills, 21 percent of work and home responsibilities and the lack of time,
women and 26 percent of men reported challenges and stress involved in traveling to work. Connectivity,
meeting other basic household expenses, and 22 in terms of phone and internet connection, was the
percent of women and 34 percent of men reported number one reason cited for lower productivity for
challenges meeting housing, car or other personal loan both women and men.
repayments.
• Women were almost twice as likely to report
Companies have experienced widespread negative household or care responsibilities as factors impacting
impacts on business and operations, including: their productivity than men.

• Eleven out of the 15 companies reported a negative • One-quarter of men and one in five women
impact on revenue, nine reported a negative impact reported they were distracted due to health, stress or
on orders or previously agreed contracts, and on their mental well-being.
ability to make new investments, and eight reported a
negative impact on their ability to service debt. Companies are implementing a range of measures
to support employees, but more needs to be done:
• Sixty percent of participating companies temporarily
redeployed employees to an alternate work role or • Almost three-quarters of firms reported their flexible
location (or plan to do so in the next three months); work policy was one of the most useful policies for
over one-quarter temporarily reduced employee work managing human resources during COVID-19. Yet,
hours, and one in five companies made employees 30 percent of women and 27 percent of men report
redundant. concerns about having the flexibility to manage
work and home responsibilities upon returning to
While most companies and employees reported the workplace. Two-thirds of those employees who
that they believe COVID-19 will equally affect reported concerns about flexibility are employed by
women and men, female and male employees companies who identified flexibility as one of the
experienced differences in the impacts of COVID-19, most useful policies.
including:
• Almost two-thirds of companies have provided
• Female employees were more likely to have employees with transportation to get to and from
experienced increased hours, remote working, a work, and yet over one-third of employees reported
change in job role or to have been re-allocated to a transportation to and from work as an area of
different business unit or work location. concern for their return to work, including two-fifths
of employees from companies already providing some
• Female managers at all levels were more likely than form of transportation.
their male peers to report increased hours, while
men at all levels were equally or more likely to report • Almost all companies reported that staff
increased responsibility. Women senior managers were engagement and communications were among the
more than twice as likely as male senior managers most useful tools for managing staff during COVID-19,

| 3
 and over nine out of ten respondents reported to workers; over one-third of workers identified
that their company’s communication about mental health and wellbeing support as needed to
COVID-19, and the associated impacts on their help manage work and life during COVID-19.
employment and the business was highly or
somewhat effective. • Almost two-thirds of workers reported health
and safety concerns, including access to PPE and
• Two-thirds of companies have provided some adequate social distancing measures, when asked
form of mental health and counseling support about their return to the workplace.

Recommendations
The rapid assessment has illuminated areas where greater support is needed for working women and men over the coming
period. Potential areas of focus for employers include:

• Develop and implement meaningful flexible work from companies already providing some form of
policies. Almost all companies have allowed staff to transportation. Companies should evaluate the
work flexibly, and three-quarters reported their flexible solutions they have already implemented to confirm
work policy as one of the most useful policies. Yet, whether they are meeting the needs of employees,
almost one-third of workers report concerns about or whether further actions need to be taken.
having sufficient flexibility – two-thirds of whom are Employers should consider alternative transportation
employed by companies who identified flexibility as one arrangements such as ride-hailing, to help respond to
of the most useful policies – and increased flexibility this need.
was the number one way workers felt employers could
help staff manage work and home responsibilities. • Provide mental health and wellness support.
This indicates that while most companies have flexible With over one-quarter of men and one in five women
working policies in place, more needs to be done to reporting feeling distracted or unable to focus due
ensure all staff can effectively access these benefits to health, stress or mental well-being, and over
in the way that best suits their needs. Firms should one-third identifying this as an area where support
consider ways of engaging with existing and potential is needed, there is clearly a need for employers to
new employees that allow greater flexibility, even once be investing in supporting the mental health and
the COVID-19 pandemic is over. wellness of their employees.

• Support staff, particularly women, to access In addition to employers, there are important
the technology they need to be productive. With considerations for public policymakers. While this
connectivity being the number one reason cited for low report does not offer explicit recommendations
productivity, employers need to ensure their employees in this regard, it draws on advice from the World
have access to both the hardware (laptops, phones. Bank and United Nations to highlight the potential
and other enabling physical technology), and software benefits of introducing a universal social protection
(internet connections, phone connections, etc.) to ‘floor’, targeted normally to only the poor, but
enable them to effectively stay connected. allowing other households that have lost their
incomes to rapidly register and receive temporary
• Conduct transport needs assessment and financial support. Doing so would ensure the poorest
consider providing employee transportation. members of society would be in a better position
Over one-third of staff were concerned about than before the crisis, while those on middle incomes
safe transportation in the context of returning to would have a high proportion of their lost income
the workplace, including two-fifths of employees restored.

“ Almost all companies have allowed staff to work “

flexibly, and three-quarters reported their flexible work
policy as one of the most useful policies

4 |
Purpose of This Report
This rapid assessment (the Assessment) was conducted between June 22 to July 22, 2020. The purpose was to understand
the impacts of the pandemic on human resources of a group of large businesses in Sri Lanka, from a range of sectors, with a
specific focus on the impacts on women’s and men’s ability to remain employed and to work productively.

Data for the Assessment was collected through the following two activities:

• Human resources survey completed by 15 large firms, women and 50 percent were men.
employing more than 140,000 employees, including
approximately 85,000 women, and representing • Sixteen follow-up interviews were held with ten
the following sectors: Banking and Finance (3 firms), female employees and six male employees.
Conglomerate (6 firms), Fast Moving Consumer Goods
(3 firms), Information Technology (1 firm), Garments Because all surveys and interviews were conducted
and Manufacturing (2 firms), and Shipping (1 firm). with large businesses, they may have higher levels of
resilience, and may have been impacted differently
Note: In order to provide a more nuanced perspective from other smaller businesses. The results of this
between sectors, data from Hemas FMCG was included study should not be assumed to be representative of
in the study separately from the rest of the Hemas the Sri Lankan private sector as a whole.
Group. For this reason, the company analysis includes
15 companies in total. For the purposes of this report, the onset of COVID-19
in Sri Lanka is taken as being mid-March 2020 when
• Employee survey completed by 1,032 employees from all public schools were closed, seven days before the
across the 15 companies, 50 percent of which were nationwide curfew came into effect.

“ Employee survey completed by 1,032 employees

from across the 15 companies, 50 percent of
which were women and 50 percent were men
“
With thanks to the following participating institutions

| 5
 Business Impacts
The companies surveyed reported widespread negative business impacts due to COVID-19. Only one company,
from the financial sector, reported consistently positive or neutral business impacts. Eleven companies reported
a negative impact on revenue, nine reported a negative impact on demand for products and services, and eight
reported a negative impact on orders or previously agreed on contracts (Figure 1).

Figure 1

Impacts on Revenue, Demand for Products or

Services and Orders or Previously Agreed Contracts
Negative impact Don't know/ Not relevant No Impact Positive impact

11
Number of companies

Number of companies

Number of companies
9 9

3 3
2 2 2 2
1 1

Revenue/ Demand for products Orders or previously

Cash flow or services agreed contracts

None of the 15 companies surveyed reported companies) reported a negative impact on

“
positive impacts on operations or financial their ability to service debt (Figure 3).
decisions (Figure 2). Ten reported a negative
impact on sourcing of stock or raw materials,
and on operational processes. More than half
(eight companies) reported a negative impact
on fulfilling contractual obligations to buyers
or suppliers, and just under one-half (seven
companies) reported a negative impact on the
distribution of goods or services. Nine companies
also reported a negative impact on their ability
to make new investments, and over half (eight
Over half of companies
reported a negative impact
on their ability to service debt
“
Figure 2 Figure 3

Impact on Operations Impact on Financial

Decisions
Negative impact No Impact Don't know/ Not relevant

Negative impact No Impact

10 10
Don't know/ Not relevant
9
8 8
7
Number of companies

Number of companies

5
4 4 4 4
3 3 3 3
2 2
1

Sourcing Operational Fulfilling Distributing Ability to Servicing of

stock or raw processes contractual goods or make new debt
materials obligations to services investments
buyers/ suppliers

6 |
Employment Impacts
Workplace Adjustments
The companies surveyed have faced a range • Sixty percent of companies have either
of employment-related challenges since the temporarily redeployed employees to
onset of the pandemic in March 2020. All 15 another work role or location (33 percent),
companies requested employees to work from or plan to do so in the next three months (27
home for at least some period, and almost percent).
all (93 percent) allowed employees to work
flexibly in terms of adjusting work hours or • One company directed employees to take
work location. These findings reflect a new paid and unpaid leave, including standing
way of working and present an opportunity down or furloughing of some employees. All
for firms to think about their human resources other companies have not done so and do
in a different way. Firms should consider ways not plan to do so.
of engaging with existing and potential new
employees that allow greater flexibility, even • Twenty percent of firms made employees
once the COVID-19 pandemic is over. Other redundant, while the remaining 80 percent
significant impacts included (Figure 4): do not plan to do so. Those that experienced
redundancies represent the conglomerate
• More than one-quarter (27 percent) and garments sectors.
temporarily reduced employees’ work hours
and one additional company plans to do so • One company, in the conglomerate sector,
in the coming three months. Two companies expects to hire new employees within the
temporarily increased employees' work hours. next three months.

| 7
 Figure 4

Workforce Adjustments Due to COVID-19

Directed or allowed employees to work Directed or allowed employees

flexibly in terms of work hours or location to work from home

Already taken
Not planned
7%
100% Already taken

93% Temporarily redeployed employees to

another role or work location
Already taken Planned within next 3 months
Not planned Not relevant

Temporarily reduced employees work hours

Already taken Planned within next 3 months
Not planned 7%
33% 27% 33%

27%

7%

67%
Hired additional employees
Planned within next 3 months Not planned
Not relevant
Temporarily increased employees
work hours 7% 73% 20%

13% 27%

Not planned
Already taken
Not relevant

53%

Made employees redundant

Direct employees to take unpaid leave, Already taken Not planned Not relevant
including standing down employees
Already taken Not planned Not relevant 53%

27%
20%
7%

73%

20%

“
Directed employees to
take paid leave
Already taken Not planned Not relevant

One-third of companies
temporarily redeployed employees
to another role or location
“ 7%

20%
73%

8 |
Most company responses (80 percent) indicated that (17 percent compared to 14 percent of men).
they believe COVID-19 will equally affect women and
men in terms of their ability to remain in work. Among Female managers at all levels were more likely than their
employees, however, there was more variance; around male peers to report increased hours, while men at all
six out of ten employees felt women and men would levels were equally or more likely to report increased
be impacted equally, while 15 percent of women and responsibility (Figure 6). Female senior managers were
eight percent of men felt COVID-19 will more negatively more than twice as likely as male senior managers to
impact female employees, and 12 percent of men report increased hours (59 percent of women compared
and ten percent of women believe men will be more to 28 percent of men). However, they reported the same
negatively impacted. result as men in terms of increased responsibility (50
percent). Female junior managers were also nine percent
Employees reported several changes to their ways of more likely to take on extra workloads than their male
working due to COVID-19 (Figure 5). Men tend to report peers, but were four percent less likely to have been given
slightly higher responses in areas that suggest they more responsibility.
were less negatively impacted, such as experiencing
increased responsibility (34 percent of men compared Women were also more likely to report having worked
to 29 percent of women), or no change in their work (16 from home during the curfew period (March – June), with
percent compared to 12 percent). While women were 58 percent of women having worked from home during
more likely to have experienced increased hours (23 this time, compared to 46 percent of men. Conversely,
percent compared to 17 percent), remote working (76 men were more likely to have a combination of home-
percent compared to 70 percent), and were more likely based and work-based (29 percent of men compared to
to have experienced a change in job role or re-allocation 22 percent of women).

Figure 5

Employee Reported Workplace Adjustments

Experienced Due to COVID-19

70%

“
Remote work or work from home
76%
34%
Increased responsibility
29%
17%
Increased hours 23%

No change
16% Female senior
12%
12%
managers were
Reduced hours Male Female
13% over twice as
Leave with pay

Change in job role

Re-allocated to different
business line or location
5%
7%
9%
12%
9%
10%
likely as their male
peers to report
increased hours
“
2%
Reduced responsibility
3%
2%
Leave without pay
0%

Figure 6

Workplace Adjustments by Level

of Management
Increased hours Increased responsibility
Re-allocated to different business line or location
59%

50% 50% 49%

43%

35%
33%
30% 31%
28% 28%

19%

6% 7% 7% 8%
3% 4%

Male Female Male Female Male Female

Senior Management Middle Management Junior Management

| 9
 Salary and Benefits
Men were slightly more likely to have experienced some to 1 percent of women). While women were slightly
change in their salary (both positive and negative) due more likely to have experienced a negative impact in
to COVID-19 (Figure 7). Almost one-third (32 percent) terms of benefits (Figure 8), 40 percent of women
of men experienced a reduction in salary, compared to experienced reduced benefits, compared to 37 percent
29 percent of women, and men were slightly more likely of men, and five percent of men experienced increased
to have experienced an increase (3 percent compared benefits compared to four percent of women.

Figure 7 Figure 8

Impact of COVID-19 Impact of COVID-19 on

on Salary Employee Benefits Received
Male Female Male Female

5%
32% No benefits
6%
Reduced salary
28%
37%
3% Reduced benefits
Increased salary 40%
1%
5%
64% Increased benefits
No change 4%
70%
49%
No change
1% 48%
Don't know
1%
4%
Don't know
3%

Productivity
Almost one-third of all respondents reported they productive than I thought,” said a female employee in
were somewhat less productive or highly unproductive the garments sector. In contrast, when asked about
during the previous three months as compared to what helped increase productivity levels, men were
pre-COVID-19 (Figure 9), with men more likely to have more likely to reflect on the desire to not let co-
reported reduced levels of productivity than women. workers down and the motivation that came with
Some of the reasons given by women included the increased responsibility. "Increased responsibilities make
challenges of balancing work and caring for young us more productive. We wanted to reach our targets within
children. “It is stressful to work at home and I am sure my a shorter period of time," said a male employee in the
productivity was really low because with a child at home, it is garments sector. "Even with the stressful situation, we
difficult to work with good concentration,” said a pregnant managed to maintain our best productivity and efficiency,"
female employee with one child at home. While other said a father of three employed in the conglomerate
employees referred to the lack of supervision which can sector.
lead to lower productivity. “I think the level of productivity
during the COVID period was low because there was less There were significant sectoral differences in terms of
supervision when we worked from home,” said a male productivity impacts, with IT and shipping reporting
employee in the IT sector. the greatest increases in productivity (66 percent of
staff), followed by the FMCG sector (60 percent). In
Over three-quarters of women reported the same or contrast, the garments and manufacturing sectors
an increased level of productivity during COVID-19, reported the highest levels of reduced productivity (36
compared to just over two-thirds of men. This may percent of staff), followed by banking and finance (31
be due to the increased levels of flexibility employees percent), and the conglomerate sector (30 percent).

“
experienced and the higher proportion of employees
working remotely or from home during COVID-19,
which allowed women to better manage work and
home responsibilities. One mother of two, employed in
the conglomerate sector, reflected, “I love working from
home. It allows me to be around my family, and I can finish Over three-quarters of
my daily tasks any time during the day, not having to stick
to the 8 a.m to 5 p.m schedule.” Others also reflected on
the benefits of not having to travel to work. “Working
from home is a new experience. Traveling to work made me
physically tired. As there is no traveling, working from home
motivated me to work with more enthusiasm. I was more
women reported the same
or an increased level of
productivity during COVID-19
“
10 |
Figure 9

Self-Assessed Productivity Levels During COVID-19

(3 months) Compared with Pre-COVID-19
Male Female Total
33%
30% 31%
27% 26% 24%
25%
22% 22%
16%
14% 15%

3% 3% 3% 2%
1% 1%

Highly Somewhat Same Somewhat Highly Don't know/

unproductive less more productive Can't say/
productive productive Refused

Of those respondents who reported lower levels was only a small difference in self-reported
of productivity during COVID-19, connectivity was productivity among parents with children
the number one reason given (Figure 10). Given the under the age of 18 at home with them during
projections that COVID-19 will be present in some form COVID-19 – with 29 percent of women and 31
for many more months to come, this finding suggests percent of men with children reporting being
that more needs be done to ensure staff have adequate somewhat less or highly unproductive, compared
connectivity, wherever they need to work from home. to 24 percent of women and 28 percent of men
without children.
There were several areas where women and men
differed in their responses, particularly when it came The top three factors impacting women’s
to household or care responsibilities. Women were productivity, apart from connectivity, were
significantly more likely to report household or care household responsibilities (32 percent), home
responsibilities as factors impacting their productivity office set-up (28 percent), and work program not
than men, with 42 percent of women identifying with well-suited for home-based work (25 percent).
at least one of these reasons compared to 25 percent Men, on the other hand, reported home office
of men. In the words of one father, “For me, managing set-up (32 percent), work program not well-
children was never a responsibility. Since I worked from home, suited for home-based work (29 percent), and
they made my work life easier and more productive. I got all being distracted or unable to focus due to health,
the support from my two children. I wish I could work from stress or mental well-being due to COVID-19 (25
home continuously." These findings suggest that many percent). These findings help illuminate the areas
women have taken on the added responsibility of care where male and female employees may require
and household tasks during COVID-19. Overall, there different types of support in the coming months.

Figure 10

Factors Affecting Employees’ Ability to Work

Effectively During COVID-19

Connectivity issues (i.e. difficulty accessing internet, 42%

computer or other technology required) 44%

Other household responsibilities 19%

(housework, cooking, cleaning, etc.) 32%

32%
Home office set-up
28%

Work program/ Activities not suited 29%

to home-based work
25%

Distracted or unable to focus due to health, stress or 25%

mental well-being due to COVID-19 crisis 19%

Lack of clarity on new procedures or 17%

changes due to COVID-19 15% Male Female

Lack of access to childcare or 5%

eldercare support 10%

19%
Don't say/ Can't say/ Refused/ Others
17%

| 11
 Childcare Responsibilities
Almost half (43 percent) of all respondents in the Almost one in ten mothers reported caring for
employee survey reported having children under the children themselves during work hours, while fewer
age of 18 under their care during the pandemic, with than one in 20 men reported doing so.
men more likely than women to report this to be the
case (47 percent of men compared to 40 percent of These findings are also reflected in workers'
women). concerns about returning to the workplace. More
than one out of ten parents reported concerns
When asked how parents managed balancing work and around childcare support in the context of returning
childcare, and homeschooling needs during COVID-19, to the workplace, with mothers more likely to
men were almost twice as likely as women to report identify childcare as a concern (15 percent of
having a spouse or other family member available mothers compared to eight percent of fathers).
to care for children during work hours (61 percent of When asked about their concerns, parents reflected
men compared to 34 percent of women). Conversely, on the lack of adequate support for their children
women were 16 percent more likely than men to have at home. One, father of three, reflected, “My eldest
other childcare support at home in the form of a nanny son is 17-years-old. So, we left the other two kids
or extended family member, and were 13 percent more with him because we have no other choice. We were
likely than men to manage care and homeschooling always worried about their safety, security, schoolwork,
activities themselves after regular work hours (22 homework, and meals when we left for work. Those days
percent of women compared to nine percent of men). were more stressful."

Figure 11

Who Cares for Children During Work Hours

Spouse/ Family member

61%
34%

21%
Childcare support at home
37%

Myself jointly with spouse/ 27%

Family member
25%

I manage home school after 9% Male Female

work hours
22%

4%
Myself
9%

2%
Childcare facility
2%

1% Note: Respondents were able to select up to three answer

I take paid or unpaid leave choices to reflect that many parents used a combination of
1%
childcare solutions.

Financial Impacts of COVID-19 on Employees

Almost two-thirds of respondents reported at least one basic household expenses, compared to 21 percent of
impact of COVID-19 on their ability to meet personal women.
and family financial obligations (Figure 12). Women
and men both reported the same top three areas of When asked about these impacts, employees
financial stress, but with marked differences between reflected that they faced financial stress for a range
them: of reasons. In the words of one female employee in
the banking and finance sector, who is the primary
• Women faced the greatest stress in terms of meeting income earner for her family, "I had to face tremendous
increased electricity and other utility bills 42 percent, financial stress since my husband is a school van driver, and
compared to 37 percent of men. he got no income for nearly five months. There is neither
any financial support from the workplace nor from the
• Over one-third of men reported challenges meeting government.” A female employee in the conglomerate
housing, vehicle or personal loan repayments, sector reflected, "My monthly savings have drastically
compared to 22 percent of women. reduced due to the unavailability of over-time work and the
monthly allowance cuts. I really need financial assistance
• Over one-quarter of men report challenges meeting right now!"

12 |
Figure 12

Personal and/or Family Financial Obligations During COVID-19

Increased electricity and other utility bills Challenges meeting housing, vehicle and
Male Female Total personal loan repayments

Male
34% 22% 28% Female
Total

37% 42% 39%

Challenges meeting basic Partner or spouse has lost their job

household expenses or experienced reduced earnings
Male Female Total
Male Female Total

26%
10% 12% 11%
21%

24%

Challenges meeting childcare and

school expenses
Challenges meeting Male Female Total
healthcare expenses
Male Female Total

8%

6%

7%
6% 6% 6%

Challenges meeting eldercare expenses Don't say/ Can't say/ Refused/ Others
Male Female Total
4%
5% 37%
36% 35%
Male
Female
Total

4%

When asked about other economic impacts of implementing livelihood support programs for their
COVID-19, over two-fifths of workers reported that employees (see Box 1).
they will most likely need to supplement their income,
as a result of COVID-19 (Figure 13). One male employee Almost one-third also report that they will need to
from a conglomerate, for example, indicated that he up-skill or retrain in a new area (Figure 13). One in
has existing skills he would like to put to use. "I am five respondents were concerned about possible
planning to use my skills to start a garage near my home job-losses, and almost one in ten believe they may
to make an additional income," he said. Meanwhile, need to find new employment. In all the cases, men
others reflected the need for supplementary income were slightly more likely to have reported these
but were not sure how to go about it. "I think having a potential impacts. The one area where women were
supplementary income would be very beneficial. But, at this more likely to anticipate a negative impact was the
moment, we cannot start or think of any new ways because likelihood of having to resign, take extended leave or
of the prevailing situation in the country," said a female reduce hours to manage household responsibilities
employee from the garments sector. Some companies (four percent of women compared to two percent
that participated in the study have already begun of men).

| 13
 Figure 13

Other Economic Impacts of COVID-19 Anticipated by Workers

Requirement for supplementary May need to up skill or retain in a new

income generation area or to develop new skills
Male Female Total
Male Female Total
44%

41% 32% 29% 31%

42%

Possible job loss Need to find new employment

Male Female Total Male Female Total

21% 19% 20% 9% 6% 8%

“
May need to resign, take extended leave
or reduce hours to manage household
responsibilities
Male Female Total
Over 40 percent of
employees may require
supplementary income
“
2% 4% 3%

Box 1. Upskilling and Providing a Secondary Income Source

Hela Clothing (Hela), a company focusing on apparel manufacturing, design, and innovation, employs over 15,000 people, of which 71 percent are
women. To provide factory staff with a secondary income source, the company created the Hela Diriliya Club. This initiative allows each factory
to execute projects that will help staff generate a secondary income. Through an internal survey, the areas identified for income generation are
home gardening, plant nurseries, food manufacturing, transportation, and beauty and skincare. The idea was conceptualized pre-COVID-19
but was executed following the onset of the pandemic when it became clear that many Hela employees and their families were in need of a
secondary income source.
Hela supports interested employees by developing an action plan, providing technical training, facilitating access to financial support when
needed, and linking up participants with a market for their products. By the end of 2020, 350 female factory staff will complete the pilot of the
Diriliya program.
MAS Holdings (MAS), also recognizes the importance of supporting female employees to develop small scale businesses and has been doing
so for almost 16 years. MAS identified early on that women in the apparel industry, especially because of the shift-based nature of the job, are
interested in starting their own businesses while engaging in formal work at MAS facilities. MAS provides technical training in a range of areas,
and in 2019 launched a program to bring external entrepreneurs together with MAS employees to help build capacity in relation to marketing,
product development, business planning, sustainable business practices, and social media presence.
These activities have taken on greater importance during COVID-19, when MAS consulted with 150 women across the group to identify key areas
of support needed. As a result, MAS, in collaboration with Lonali Rodrigo, designer and founder of House of Lonali, has been supporting women
through this program to develop business plans that respond to COVID-19 realities, along with ensuring the women work closely with their local
communities in their businesses in a bid to develop more community-based businesses and supply chains. Through this pilot program, MAS will
select 50 out of the current 150 participants to do training and development in selected areas based on their needs and to also provide mentoring
and support through professionals and experts in their geographic locations.

14 |
Secondary Impacts
Of the 516 women that completed the survey, six percent were in senior management, 21 percent in middle
management, 36 percent were junior or senior executives, and 37 percent were operational staff. A similar
breakdown applies for male respondents, with six percent in senior management, 20 percent middle management,
41 percent junior or senior executives, and 24 percent operational staff (Figure 14).

Female Male

Senior 6%
6% management

Middle
21% management
20%

Junior or senior 41%

36% executives

Operational
37% staff
24%

Figure 14

Male respondents were more than twice as likely to report being the primary income earner in their household (70
percent compared to 35 percent of women), while women were over twice as likely to report being the secondary
income earner (52 percent of women compared to 21 percent of men) (Figure 15). These findings reflect traditional
gender roles in Sri Lanka, where men are generally considered the primary breadwinners.

Figure 15

Share Of Respondents by Overall, 59 percent of female respondents

Primary, Secondary or Tertiary and 64 percent of male respondents are
married. Of those who are married, more
Household Earner than three-quarters (79 percent) of women's
spouses are involved in some form of
Male Female
70% economic activity, while only around half (52
percent) of men's spouses are involved in
52% some form of economic activity. COVID-19
seems to have increased the likelihood of
35% some spouses to seek work as over one-fifth
of women reported that their spouse will
21%
seek new job opportunities due to COVID-19,
13%
9% and an additional 16 percent were unsure,
while 16 percent of men also reported that
Primary Secondary Tertiary
their spouse may look for new work, and a
income income income further 15 percent were unsure (Figure 16).
earner earner earner

When looking only at those spouses who

were previously not involved in any economic
Figure 16 activity, we find that there is a significant
increase in the likelihood that they will
Share of Respondents Reporting now look for work as a result of COVID-19.
their Spouse May Seek New or One-quarter of married women and over
one in six married men reported that their
Additional Job Opportunities due previously unemployed spouse may seek new
to COVID-19 or additional job opportunities as a result of
COVID-19. One in six married women and
67%
men reported they were unsure whether
59% their spouse would seek new or additional
Male Female work. This reflects the financial challenges
families are facing as a result of COVID-19,
and the need for additional or supplementary
income. This can also present an opportunity
21%
16% 15% 16% for increasing women’s participation in paid
work in Sri Lanka.

Yes No Unsure

| 15
 Creating Safe Systems of Work and COVID-19 related Benefits
All firms have developed a variety of systems to ensure the safety of their workforce during COVID-19, including the
requirement for employees to practice social distancing when at the worksite, and providing employees with personal
protective equipment. Notwithstanding this support, almost two-thirds of workers reported health and safety concerns,
including access to PPE and adequate social distancing measures, when asked about their potential return to the
workplace (Figure 17).

Ninety-three percent of the companies surveyed or power bills. This is reflected in the 39 percent of
reported that they have provided employees with the respondents who reported challenges in meeting
tools they need to complete work remotely, and the increased utility bills.
remaining company plans to do so within the next
three months. Notwithstanding this support, almost Sixty percent of companies have provided
one-quarter of workers are concerned about their employees with transportation to get to and from
ability to continue to work from home due to not work, while the remaining 40 percent do not
having a suitable space (22 percent), and just over one plan to do so. More than one-third of employees
in ten reported that they do not have reliable access reported transportation to and from work as an
to the internet or access to appropriate IT equipment. area of concern for their return to work. Almost
More than one-third of workers are also concerned half of those workers who are concerned about
about increased household expenses associated with transportation (or 19 percent of all respondents) are
working from home, such as increased internet, phone employed by companies who report already having

16 |
Figure 17

Employee concerns about returning to the workplace

Health and Safety including access to Transportation to and from work

personal protective equipment and adequate Male Female Total
social distancing precautions
Male Female Total 39% 39% 39%

67% 61% 64%

Flexibility to manage work and home

responsibilities

Support for necessary workplace

adjustments Male Female Total
Male
Female
Total
27% 30% 29%

35% 29% 32%

“
Childcare support

Two-thirds of employees are

concerned about health and
safety upon return to work
“ Male
Female
Total

8%
5%

6%

taken action to provide transportation. This indicates no change in the level of respectful behavior
that most employers, even those who already have by customers/clients or colleagues, and almost
transportation support in place, can do more to one-quarter (23 percent) reported increased
ensure the safety of their workforce’s transportation respectful behavior. Just over one in 20 workers
options. One female employee in the banking and reported customers or clients being less respectful
finance sector reflected, "Since we could not work from towards them, and four percent of women and
home, it is better if the company at least provides us with five percent of men reported colleagues were less
proper and safe transportation. We don’t want to risk our respectful towards them (Box 2).
children's and beloved ones’ lives."
Six of the companies surveyed have already taken
While transportation issues may have eased following action to address client aggression, and 11 have
the lifting of the nationwide curfew, these findings conducted training on workplace bullying and
indicate that most employers, even those who harassment. One company plans to take action
already have transportation support in place, could in both of these areas within the next three
do more to ensure the safety of their workforce’s months. However, any policies and procedures
transportation options. IFC’s forthcoming study on that businesses have implemented to respond to
women in the ride-hailing sector identifies ride- harassment and abuse in their workplaces were
hailing as one option for providing safe employer- developed in a pre-COVID-19 era. These may
supported transport that companies could explore in not translate well in the current context where
this context. employees may feel more inclined to tolerate
abusive behavior, and where they may have
During the pandemic, it was widely reported fewer opportunities to connect with key business
that there was an increased risk of bullying and personnel who would normally be their primary
harassment, including increased client aggression. contact for discussing disrespectful behaviors
that occur at work. They also may not adequately
Among survey participants, the majority reported address online and cyberbullying and harassment.

| 17
 Box 2. Impact of COVID-19 on Respectful Workplace Behavior

In a recent IFC study, across three companies in Sri Lanka, there was a consistent concern among managers that bullying and sexual harassment
are not widely or consistently understood by employees. This suggests that the low levels of reporting among this COVID-19 study may
reflect the generally low understanding of the types of behaviors that constitute disrespectful behavior. Even among managers, the Respectful
Workplaces study indicates they may not be fully aware of the extent of the problem or the severity of the impacts of bullying behaviors in the
workplace. They talk about ‘normal bullying’ and ‘teasing’. There is a suggestion that bullying could be ‘an incompatibility of different ideas that is
simply not managed well’.
Some of those employees in the Respectful Workplaces study linked the increased risk of bullying or harassment directly to increased workloads.
Not being able to keep up with the amount of work may offer an opportunity for bullying. And both managers and employees are concerned that
managers, who also have increased workloads, now have less time to pay attention to the needs of their staff. There was a view that managers
have not received adequate training, and therefore, don’t know how to manage harassment alongside making profit.
Employees and managers generally recognize that there are new risks associated with doing more work online and remotely. They identify that
sexual harassment could be done through video calls, audio calls, and emails. But there is a gap in their knowledge about how this risk could
be addressed. Some employees raised concerns about how a remote work situation might make it difficult for people to report incidents, and
wonder if their employers are considering this and updating reporting procedures accordingly. Managers, too, appear to be unsure about how to
manage the risks of online harassment.
Participants in the study generally agreed that some key risk factors for bullying and sexual harassment are being a woman, being young, and
being a worker who has migrated to Colombo from a rural area. They also identify customer-facing roles as placing workers more at risk than
office-based roles.
Employees and managers also reflected that these behaviors negatively affect the business, and that incidents can affect the mental wellbeing of
a person and their ability to participate fully in the workforce.

Source: IFC Forthcoming. Respectful Workplaces and COVID-19.

Benefits of Existing HR Policies During COVID-19

Most companies reported that staff engagement and workplace. Two-thirds of those employees who
communications were the most useful tools in terms of reported concerns about flexibility are employed
managing human resources during COVID-19 (Figure by companies who identified flexibility as one of
18). This finding was largely supported by employee the most useful policies. This indicates that while
feedback, with over nine out of ten respondents most companies have flexible working policies in
reporting that their company’s communication place, more needs to be done to ensure staff can
about COVID-19 and the associated impacts on their effectively access these benefits in the way that
employment, and the business was highly (65 percent) best suits their needs.
or somewhat (29 percent) effective. Almost three-
quarters of workers received updates via newsletters Mental health, wellbeing, and psychological
or other email channels (71 percent) or through text counseling support (67 percent), along with
messages or other phone related channels (71 percent), physical health and medical support (60 percent),
and almost two-thirds received information through were also recognized as highly valuable policies
online or face-to-face team discussions (61 percent). during COVID-19. Staff reflected that having
Around one-third of staff accessed online resources the support of their managers helped to deal
provided by their employer. with stress and other mental health challenges,
as reflected by a female employee from the
Almost three-quarters of firms reported that their conglomerate sector. "We had to work more hours
flexible work policy was one of the most useful policies because there were fewer employees in the workplace.
for managing human resources during COVID-19, yet With the workload, most of us were depressed. But our
30 percent of women and 27 percent of men reported senior staff members always cared about us, and they
concerns about having the flexibility to manage work were continuously worried about our safety and the
and home responsibilities upon returning to the security at that time," she said.

Figure 18

Company Policies that Were Most Useful for Managing

Employees During COVID-19
Staff engagement and communication 93%
Flexible working policy 73%
Mental health and well-being and psychological support 67%
Physical health and medical support 60%
Coaching, mentoring and sponsorship 40%
Non-discrimination equal employment opportunity policy 33%
Harassment/ Anti-sexual harassment and anti-bullying policy 20%
Extended maternity, paternity or parental leave 20%
Paid family leave 13%
Onsite childcare facility 7%

18 |
Companies surveyed offered a range of new benefits to help staff manage the impacts of COVID-19 (Figure 18). These
included:

• Almost all companies have already provided staff with home-based work, with an additional one-third
online training (87 percent) or plan to do so within the planning to do so in the next three months.
next three months (seven percent).
• One-fifth of companies provided childcare support
• Two-thirds of companies provided psychological or to staff.
counseling information and support.
• Most companies offered some form of additional
• Two-thirds of companies provided additional non- paid leave in certain COVID-19 related situations. This
monetary benefits to staff, such as the provision of included:
food, medicine or other basic supplies, while one third
of companies provided additional monetary benefits to • Almost all (87 percent) reported that they provide
staff, including salary advances, short-term or low or staff with paid leave in the case of COVID-19 related
no-interest loans. illness or quarantine.

• Sixty percent of companies permanently re-deployed • Two-thirds provide paid family leave to care for
staff, and an additional 13 percent plan to do so within family or household members.
the next three months.
• Three-quarters of companies provide extended paid
• Just over one-quarter of companies provided maternity leave for pregnant and nursing women, and
allowances to staff to cover costs associated with almost half (47 percent) provided paternity leave.

Building Resilience
Human Resources Management
When asked what type of additional support would be • Refresher training or upskilling training for
most helpful for people management in the context of employees (74 percent).
COVID-19, the following were the areas which were
identified by companies as the most useful. • Health care information for employees,
including information on insurance
• Counseling and other mental health and wellbeing coverage, and plans and guidance on pay
during COVID-19 (87 percent). and benefits (63 percent).

• Communications strategy and awareness-raising for • Conducting employee diagnostics or an

employees related to COVID-19 (80 percent). employee needs assessment and upgrades
in digital office infrastructure, and staff skills
• Policy development, such as home-based and flexible for remote work (60 percent respectively).
work, or respectful workplace policies (73 percent
within the next three months, seven percent within the • Advice on staff-redeployment and
next 12 months). childcare support (53 percent).

“ “
Increased flexibility was the number one way
workers felt employers could help staff manage
work and home responsibilities

Supporting Workers
Workers identified a range of additional ways in which identified mental health and wellbeing
their employers could help support them to balance resources as a key area where support is
work and home responsibilities during COVID-19 needed. The next most requested area of
(Figure 19). Increased flexibility was the number one support was a home-based work allowance
way workers felt employers could help staff manage to cover the costs of operating from home (31
work and home responsibilities, with women more percent), followed by regular communication
likely to request this than men. from management about business processes
and expectations related to COVID-19 (29
Over one-third (37 percent) of all respondents also percent).

| 19
 Figure 19

Support Identified as Most Helpful by Employees for Managing

Work and Home Responsibilities During COVID-19

Increased flexibility in terms of work 40%

hours or location
46%
43%
Mental health and well-being 36%
during COVID-19 37%
37%
Home-based work allowance to cover 33%
costs of operating from home
29%
31%
Regular communication from management 31%
about business processes and expectations 27%
related to COVID-19 29%
18%
Don't say/ Can't say/ Refused/ Others 19%
19%
14%
Personal loan 11%
13%
Male Female Total
Childcare support (such as paid leave, parenting 7%
resources, parent support groups) 10%
9%
2%
Leave without pay 2%
2%

In addition to support by employers, there is also workforce – are supported throughout the
an important role for public policy in ensuring all COVID-19 pandemic, and during the recovery
Sri Lankans – those still employed, those who have phase. Box 3 outlines some potential avenues
lost their employment, and those outside the formal for support in this area.

Box 3. Social Protection Measures to Help Minimize the Economic Impact of COVID-19
Sri Lanka is at risk of a deep economic recession as a result of COVID-19, potentially leading to a fall of up to 6.7 percent of GDP, with significant
negative repercussions for individual and family well-being. With limited provision of social protection support, large segments of society are
vulnerable during this crisis. This is true for those in the formal economy as well as the informal, particularly as many in the former are losing
their primary source of income or having hours and incomes reduced. While the initial responses by the Government of Sri Lanka reached a
large percentage of the population, more needs to be done, especially as the crisis continues for longer than expected. It is especially important
that measures are put in place to protect informal workers, who do not benefit from employer-based protections.
The government responded by providing emergency cash transfers to welfare program beneficiaries and others identified as ‘vulnerable’ during
the lockdown in April and May. UNICEF estimates that these transfers reached 47 percent of households (UNICEF 2020a). However, the
amount provided was only 7.3 percent of consumption (15-20 percent for the poorest quintile), and these transfers ceased once the lockdown
ended (UNICEF 2020b). A more sustainable approach would be to provide a universal social protection ‘floor’, targeted normally to only the
poor, but allowing other households that have lost their incomes to rapidly register and receive temporary financial support. Doing so would
ensure the poorest members of society would be in a better position than before the crisis, while those on middle incomes would have a high
proportion of their lost income restored. The same mechanism would be useful in helping households affected by other types of disasters as
well, such as floods and drought. This type of scheme, in addition to being strongly pro-poor, would also help to mitigate income losses across
all types of occupations, in both the formal and informal economy. This universal type approach has been advocated for at the global level by
the IMF, the World Bank, and the United Nations.

Source: United Nations Sri Lanka, June 2020. Tackling the COVID-19 economic crisis in Sri Lanka: Providing universal, lifecycle social protection transfers to protect lives and
bolster economic recovery.
UNICEF 2020a. Sri Lanka’s Initial Social Protection Response To COVID-19: An Analysis of Winners and Losers. UNICEF Sri Lanka Policy Brief April 2020/01.
UNICEF 2020b. An Assessment of the Value of the COVID-19 Support to Sri Lankan Households. UNICEF Sri Lanka Policy Brief April 2020/02.

“ Sri Lanka is at risk of a deep economic recession as a result of COVID-19,

potentially leading to a fall of up to 6.7 percent of GDP, with significant
negative repercussions for individual and family well-being.
“
20 |
IFC Women in Work Program

IFC, Level 15, NDB-EDB Tower

42, Nawam Mawatha
Colombo 2
Sri Lanka
Email: [email protected]
Visit: ifc.org/sheworkssrilanka
October 2020

The IFC-DFAT Women in Work program in Sri Lanka,

partnering with leading private sector companies, aims to
demonstrate that corporate performance can improve from
closing gaps between women and men in the private sector.