Most Sri Lankan families are struggling to meet the costs of childcare. A vast majority of women who wish to be employed do not enter the labour market due to the lack of quality and affordable childcare. Even low-income families have to bear the high cost of childcare due to the absence of affordable childcare arrangements. Despite a growing need for childcare, for many women, finding quality and affordable childcare is difficult and childcare costs are very high. At the same time, faced with labour shortages employers are struggling to attract women to the workforce. Some companies have tried to overcome this problem by offering childcare at the workplace. This blog, based on an IPS study, tries to assess the feasibility of employer-assisted child care by estimating the willingness of women to pay for such childcare.
Lockdowns and restricted mobility have devastated labour markets across the world. According to the International Labour Organization (ILO), the equivalent of 225 million jobs was wiped out globally due to employment and working hour losses in 2020 compared to 2019 (Q4). These working hour losses are four times higher than those experienced during the global financial crisis in 2009. The COVID-19-instigated recession has affected the quantity and the quality of jobs, with increasing levels of informal types of work with lower remuneration. Restoration of labour markets is important to minimise damage to human development and increase aggregate demand, thereby boosting economic recovery. This blog looks at why it is important to have targetted policy interventions to revive the labour market by illustrating that the impact of COVID-19 is different across occupations and industries.
Many countries, including Sri Lanka, started practicing mobility restrictions from March 2020. As a result, in parallel to the slowdown of global merchandise production, trade volume also contracted from the second quarter of 2020. However, the World Trade Organization (WTO) estimates that the realised trade contraction in 2020 was just 5.3% contrary to the April 2020 forecast of a sharp contraction by between 13% and 32%. Meanwhile, countries used trade policy to ensure that essential food, drugs, and medical equipment are available domestically. In addition, countries like Sri Lanka used trade policy tools to contain imports to allay pressures on the domestic currency. This article discusses global and Sri Lankan trade during this pandemic, the impact of the pandemic and trade policy on Sri Lanka’s trade and food imports, and policy options for sustained growth in trade and domestic food security.
While the government – which is grappling with massive debt burdens and fiscal deficits – has limited capacity to assist workers and employers, are there ways in which current employment-related social protection programmes can be used to provide for both job and enterprise protection during crises? What measures have other countries taken that Sri Lanka can learn from? This blog examines these issues.
The Sri Lankan economy is likely to face a contraction in 2020 as a direct result of the COVID-19 pandemic but there is potential for this to be followed by a sharp V-shaped economic recovery. The means of navigating such a recovery path were discussed at a webinar panel discussion held last Thursday (15th October) to mark the release of the Institute of Policy Studies of Sri Lanka’s (IPS) flagship report ‘Sri Lanka: State of the Economy 2020’.