Sri Lanka could raise its GDP as much as 20% by closing the gender gap in its workforce. Despite the improved educational and health outcomes, women participation in country’s labour force remains low or is at 36% which is less than half of the male participation which stands at 76%, Amena Arif, Country Manager for International Finance Corporation (IFC)- Sri Lanka and Maldives said.
“The gender inclusion in the country is very crucial. However, women are less tend to participate in labour market but when they do decide to work, they are more likely to be unemployed. Social norms related to woman households such as childcare and elderly care responsibilities, restrict the women participation in the labour market,” she told at the at the 4th edition of Sri Lanka Investment Business Conclave 2019, organized by the Ceylon Chamber of Commerce at the Shangri-La hotel yesterday.
Hence, she said it is essential that the policy makers, the private sector and investors take the necessary steps in achieving sustained and more inclusive growth in the country. She said however that the country’s human development indicators have improved and helped to develop a strong human capital workforce in the country.
Speaking further, she said Sri Lanka is part of one of the fastest growing regions in the world given its strategic location in the Indian Ocean.
“We’re correctly located to serve as an emerging hub in the region. All these advantages helped the country develop niche sectors such as apparels and technology. Now we need to see how we can replicate this success across many sectors and companies. This would help us to achieve goals such as ending poverty and promoting shared prosperity. Nevertheless, some recent events have pulled our attention back on peace and security, more than ever before. So it is our responsibility to take collective measures to drive harmony in this country.”
She said further that despite the low levels of extreme poverty, nearly a quarter of Sri Lankans remains vulnerable and they are somewhat above the poverty line.
“The country also has the highest ageing population, which means the annual expansion of the workforce is slow and not conducive to extremely labour intensive efforts. Our focus must be on better jobs rather than just on more jobs, particularly for the bottom 40%.
Moreover, she noted that Sri Lanka also has one of the lowest ratios of tax revenue to GDP in the world.
In addition to this over half of the country’s GDP comes from the SME sector and it is therefore very challenging when we see these businesses face multiple constraints particularly in accessing finance and technology.
IFC has invested USD 1.3 billion so far in many sectors in Sri Lanka, including infrastructure Telecommunication, Tourism, Energy and Health.
The IFC is currently working and tapping on the renewable energy sector efforts in the country by bringing in private sector to develop large solar and wind power projects.
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