ILO and Japan Launch $1.6m Project to Expand Social Protection in Sri Lanka

Anoop Satpathy, Officer-in-Charge of the ILO Country Office for Sri Lanka and the Maldives, described the project as a reaffirmation of the ILO’s mission to extend protection to often-overlooked groups.

A new International Labour Organization (ILO) initiative, funded by the Government of Japan, aims to close critical social protection gaps in Sri Lanka by expanding coverage for both formal and informal workers. The Sri Lankan component of the regional “Promoting and Building Social Protection in South Asia” programme was officially launched in Colombo on 30 July 2025, marking a major step toward inclusive and equitable social security systems.

The launch brought together representatives from the Ministry of Labour, the Employers’ Federation of Ceylon, and key trade unions, alongside dignitaries from the Embassy of Japan, development partners, policy think tanks, and civil society organisations.

The USD 1.6 million initiative will support the design and implementation of new and improved unemployment, maternity, and pension schemes, extend protection to workers in the informal economy, and embed gender equality in all aspects of social protection planning—particularly benefiting workers in the care economy.

Strengthening Social Protection Floors

Anoop Satpathy, Officer-in-Charge of the ILO Country Office for Sri Lanka and the Maldives, described the project as a reaffirmation of the ILO’s mission to extend protection to often-overlooked groups.

“This project is a reaffirmation of our goal to extend social protection to informal workers, care workers, and women whose contributions are essential yet too often go unrecognized and unrewarded,” Satpathy said.

Michiko Miyamoto, Director of the ILO Decent Work Technical Support Team for South Asia, stressed that social protection is an economic investment, not merely a welfare measure.

“It improves productivity, encourages formalization, supports household consumption, and ultimately contributes to social cohesion and economic stability,” she noted.

Japan’s Role and Commitment

Representing Japan, Kenji Ohashi, Head of Economic and Development Cooperation at the Embassy of Japan in Sri Lanka, reaffirmed Japan’s dedication to inclusive development.

“Building a sustainable and inclusive social protection system is more vital than ever. Japan remains fully committed to this collective effort to ensure that no one is left behind,” Ohashi said.

Collective Effort Across Sectors

During the launch, ILO constituents expressed strong support for the project. The Ministry of Labour emphasised the need for policy coherence and institutional strengthening to sustain reforms. The Employers’ Federation of Ceylon underscored the role of the private sector in fostering inclusive growth and decent work. Meanwhile, the Ceylon Workers’ Congress—representing worker interests—called for greater equity and coverage in social protection, especially for those in informal and vulnerable employment.

Focus Areas in Sri Lanka

The Sri Lankan component will:

• Develop and improve social protection schemes for unemployment, maternity, and pensions.

• Expand coverage to informal workers who are traditionally excluded from formal systems.

• Embed gender equality into policy design, with targeted measures for care economy workers.

• Improve accessibility of benefits and information, ensuring vulnerable groups can participate fully.

A Regional and National Priority

This initiative aligns with broader South Asian efforts to strengthen social protection floors and is part of the ILO’s regional strategy to promote decent work. By tackling both policy reform and institutional capacity-building, the project aims to improve economic resilience, reduce poverty, and promote fairness in the labour market.

The ILO and Japan say they will continue to work closely with Sri Lankan authorities and stakeholders to ensure the reforms are sustainable, inclusive, and responsive to the needs of all workers—formal and informal alike.