Biggest labour reform in decades, aims to modernise economy By Bandula Sirimanna View(s): View(s):The government is undertaking an ambitious overhaul of labour laws this year, with the objective of modernising, encouraging investment, and enhancing productivity. The changes are intended to streamline the nation’s outdated labour laws, enhance the coveted “Ease of Doing Business” ranking to attract foreign investors, and meet international best practice. The Labour Department is upgrading its database to ensure all workers are registered in a national, centralised, and digital system. Manpower agencies and contract labour are gaining legal status to enhance labour flexibility in accordance with contract labour legalisation, the official said. However the government’s proposals have met resistance from trade unions.

Source: Sunday Times February 15, 2026 05:55 UTC