There are no more queues, power cuts, and goods shortages, and according to the Government, this is a sign that the country’s economy is recovering. Statistics claim that the impacts of inflation are alleviating, while the overall economy and economic activities have achieved considerable stability.
However, the economic downturn did not affect all segments of the population alike. Many are still struggling with the cost of living, job and income losses, and uncertainty about their futures, and for them, the economic crisis is a lingering issue. They are of the opinion that the country’s economic recovery should include measures to empower and protect the workforce, especially those employed in the informal sector which provides little to no job security and low or unregulated wages.
Statistics presented by various parties, including researchers and financial entities, during the past few years show that the informal sector accounts for 42-67% of the country’s workforce. However, interviews with informal sector workers suggest that this share may have increased with more people joining the informal sector due to job losses in the context of the economic crisis. Informal sector workers based in main cities such as Anuradhapura, Colombo, Galle, and Jaffna urge the authorities to take steps to ensure their job and social security through regulating the sector, social security schemes, and vocational education, among other measures.
Three-wheelers, a key driver of the domestic economy
Three-wheeler operators based in the said cities express willingness to support programmes aimed at improving their job security and to be included in social security programmes that focus on the informal sector. While some want to be included in conventional forms of schemes, others urge the authorities to introduce newer programmes. They opine that it is high time for the Government to take measures to ensure the survival of the three-wheeler transport service as they play an important role in the economy.
Twenty-six-year-old Colombo based three-wheeler operator, Kishon Pathirana said: “After 2020, especially after 2022, the cost of providing this service has tripled. Fuel prices, spare parts prices, and the cost of living have gone through the roof, while the Government is making plans to take as much money as possible as (indirect) taxes imposed on goods. We have increased our fares as much as possible, but it is still difficult to survive. We are Sri Lanka’s main private transport service providers, and without us, many of the country’s affairs will come to a halt. Therefore, I think that the three-wheeler service should be included in Sri Lanka’s economic recovery plans.”
His opinion was shared by three-wheeler operators based in the Galle and Jaffna Districts, who added that the recognition and support extended to the three-wheeler service as a key service provider are inadequate.
Speaking about job and social security in this context, 53-year-old three-wheeler operator in Galle, R.R. Kannangara said that the economic crisis has created an undeniable opportunity to introduce a contributory scheme, such as the Employees Provident Fund, to which formal sector workers are entitled to, for three-wheeler operators. Since most three-wheeler operators do not have an employer, he added, such a scheme should be between the relevant authorities and the three-wheeler operators, and should be strengthened through laws to ensure that they do not change with Government changes. “I am ready to pay a certain amount every month and receive the benefits later. However, to do that, I need to see a concrete plan that includes me and protects my contribution,” he opined.
Meanwhile, 44-year-old three-wheeler operator in Jaffna, V. Kanagarajah also expressed willingness to be included in a contributory retirement scheme designed specifically for three-wheeler operators. He also opined that since most three-wheeler operators do not have an employer, the authorities should come up with a scheme that does not require an employer.
In addition, some three-wheeler operators proposed the introduction of a retirement plan based on the number of years that a person has worked as a professional three-wheeler operator. Based in Colombo and Galle, they said that it would be crucial for three-wheeler operators who are unable to save money, have chronic illnesses, or do not have relatives or family members to take care of them. To avoid them from becoming a burden when they can no longer work, a retirement plan which helps to cover at least health and food related costs needs to be provided, according to them.
Some three-wheeler operators however, prefer not to be included in programmes aimed at improving their job- and social security. Many of them prefer to earn and save as much as possible as a form of social security.
Thirty-three-year-old three-wheeler operator from Anuradhapura, Saranga Nayana Anuradha explained these sentiments: “We don’t have an employer and the Government has no obligation to spend on our well-being. Therefore, regardless of the nature of the programmes that the authorities come up with, we will have to pay some amount from our income. I cannot allocate any money because what I make is barely enough to make ends meet. Before I think about job security, which is a long-term matter, I first have to ensure that my day-to-day expenses are taken care of.”
For some, taxes are a pressing concern that discourages them from choosing job or social security programmes. Recently revised personal income tax policies, which require those earning more than Rs. 1.2 million a year, or approximately Rs. 100,000 per month, pay personal income tax, is viewed as a challenge by some.
“In this economy, Rs. 100,000 a month is not a rich person’s income. Rs. 100,000 is what a middle-class person needs to support their family without having to take loans. I’m not ready to pay income taxes for such a small income,” 42-year-old three-wheeler operator based in Galle, Rajitha (name changed on request) said, opining that being included in job security improvement programmes or social security programmes will involve the disclosure of his monthly income, which he is not willing to do.
Several three-wheeler operators based in Colombo also expressed similar concerns. Some of them think that being included in job and social security improving programmes will result in them having to deal with stringent legal and policy restrictions and also unmanageable obligations concerning their contribution.
Meanwhile, several three-wheeler operators in Anuradhapura opined that the best form of job security that they can have is more passengers, and that the authorities should take measures to attract more tourists, especially foreign tourists, to the area. Notably, similar sentiments were expressed by some three-wheeler drivers in Jaffna, who urged the authorities to promote tourism in Jaffna so that the three-wheeler in the area would have more passengers.
Marginalised community in an unregulated sector
Among those who spoke about the reasons that led them to choose informal sector jobs were some who wanted to escape sexual orientation and/or gender identity/expression (SOGIE) based discrimination experienced in certain formal sector workplaces. They opined that being able to work in closed settings is an effective way to protect themselves against discrimination.
“I worked in a private firm which provided various online services to local and foreign clients. While I liked the job and the pay was satisfactory, almost every single day I had to experience various forms of discrimination. My (former) co-workers never said or did anything directly, which made it difficult for me to confront them regarding how they excluded me,” 33-year-old Galle based gay person, Asanka (name changed on request), described his experience. As the economic crisis intensified towards the end of 2022, Asanka’s employer resorted to lay-offs and Asanka’s contract with the firm was terminated. Despite having several diplomas and years of experience, due to the unpleasant experiences at the previous workplace, he had to prioritise acceptance and safety in the job over the salary and other perks.
“Peace of mind was more important to me than money, and I prioritised it,” he said, adding that he chose an online job which pays only around 60% of his previous income. Although this income is insufficient, especially after the economic crisis, Asanka observed that not having to deal with anyone who may judge him based on his sexual orientation is a relief that goes beyond financial stability.
Forty-year-old K. Vmantha Adhikari from Galle – who identifies as a feminine gay person and worked for a person who provides transport services, shared a similar experience. In the context of the economic crisis, his employer decided to cut the employees’ pay. Adhikari’s salary was reduced by around 30%, although the salary of the other employees who had the same job was reduced only by around 20%. “I have to be selective when I send you to clients because of the way you behave, whereas I can send the other workers to any client. You serve a lesser number of clients, and the amount of money you help us make is also low. That is why your pay cut is higher,” Adhikari’s employer had said when he inquired about his pay cut. Adhikari immediately resigned from the job, and after several months without a job, started his own business.
With regard to job security for lesbians, gays, bisexuals, transgender and other such persons (LGBT+) in the informal sector, community members from all three Districts said that the degree of job security that they can expect depends on how LGBT+-friendly their employer is. They underscored the importance of raising awareness among informal sector businesses.
Meanwhile, several LGBT+ persons working as sex workers described how they were impacted by the economic crisis: “Despite the risks that this job involves and the shame assigned to this type of profession in Sri Lanka, I chose this (profession) because it still helped me manage my expenses and I didn’t have to give explanations to anyone about my gender identity. However, economic issues affected my clients as well, and they can no longer afford my increased charges. With the decline in clientele, I am wondering whether I should continue this (profession),” 28-year-old transgender person from Colombo, Nayani (name changed on request) shared her experience.
Speaking of how Sri Lanka can address discrimination against LGBT+ persons in the workplace, LGBT+ community members pointed out practical difficulties in regulating the informal sector. Although it is possible to advocate for equal employment policies in the formal sector, they observed, policies are something that rarely exists in the informal sector.
Twenty-five-year-old gay person from Colombo, Nimhana (chosen name) shed light on this situation: “Equal employment policies are becoming a common thing in the formal sector. But, it is not going to work in the informal sector, as policies are not something that they are used to. Therefore, I think that what suits the informal sector is equal employment related attitudes. Informal sector businesses may not embrace written policies. But, if we can raise awareness among them that what matters is an employee’s knowledge, experience, skills, and character, and not their SOGIE, I think that we should be able to make an attitudinal change in the informal sector to promote equal employment opportunities for all.”
Several Anuradhapura and Galle-based LGBT+ community members employed in the informal sector said that the Government should protect marginalised and underprivileged groups because these groups have a massive potential to support economic recovery, which they said has been blocked by discriminatory practices in the workplace.
Thirty-one-year-old Colombo-based gender fluid person, Kavya (chosen name) opined that the informal sector would not remain informal for long: “The authorities are doing everything that they can to increase the tax revenue and monitor business transactions. They have identified that there are informal sector businesses that make huge profits but don’t get taxed. I think that the authorities will soon pay attention to this, and introduce regulations, policies, and various procedures for the informal sector. Their intention will be to garner as much tax revenue as possible. But, I assume that in this process, the informal sector may be regulated and policies pertaining to hiring and equal treatment may be introduced.”
Working post-retirement age
The impacts of the economic crisis on elderly persons go beyond job security related issues. Some who were interviewed explained that although their jobs were not directly affected by the recent economic decline, impacts on their customers affected their income.
This was explained by 62-year-old lottery seller based in Colombo, Samaratne Vidana: “I have been doing this job for around 25 years, and I have survived various socio-economic issues. However, after the economy collapsed in 2022, I have started to doubt whether I would be able to make ends meet any longer. I didn’t lose my job. But, my job cannot exist without customers. Most of my customers are middle-class people who were affected by the economic crisis. They cannot afford to buy lottery tickets as before.”
Until early 2022, Vidana used to sell approximately 300 lottery tickets a day. Now, he sells less than 100 a day. Similar hardships were discussed by several lottery sellers based in Anuradhapura, Galle, and Jaffna as well. Their concerns revolved mainly around the fact that most lottery buyers are no longer able to spend as much money on lotteries as before.
A Galle based lottery seller opined: “The possibility of winning (the lottery) is extremely low. It was always a well-known fact, and the people bought lotteries because there was a chance to win a lottery at a very small price. However, the economy has affected ordinary, working people in every way. Therefore, they tend to save money instead of taking a risk and losing it.”
Sixty-one-year-old lottery seller, who introduced himself as Samaraweera, added that since the economic crisis is unlikely to come an end in the foreseeable future, as a temporary measure, either the prices of lotteries should be reduced or lottery sellers should be given a higher commission.
Meanwhile, several Jaffna-based vendors expressed concerns about the lack of governmental support, adding that individual vendors would be able to earn enough money to save only if the Government supported them to purchase goods directly from producers.
Sixty-six-year-old vendor from Jaffna, Selliah Selvakumar said: “We don’t want loans or allowances. We are not asking for anything for free. We can make ends meet with our income. However, given the state of the economy, a little support would be immensely helpful. All we ask is that we be supported to purchase goods directly from producers without the involvement of intermediaries that rip us off. If Government workers can handle the transportation of goods, the Government can give more jobs to people, we get goods at fair prices, and customers don’t have to pay exorbitant prices for essentials.”
Another vendor added that supporting informal sector workers to support themselves is the best job security that the Government can provide.
Meanwhile, 63-year-old daily-wage labourer from Anuradhapura, Bandula Gunaweera pointed out the impacts of the economic crisis on his personal and professional lives: “People don’t want to hire me for laborious jobs, and I have to be mindful about health issues when accepting work. My income, which was about Rs. 2,500 before the economic crisis, has reduced to around Rs. 2,000. The Rs. 500 difference is not the issue. The issue is I don’t get work as before. I used to have work almost every day. But now, I work only about four days a week. I have to work, because I have to eat and buy my medicines which I cannot miss.”
Owing to this situation, Gunaweera has made plans to migrate to Colombo seeking work as some of his acquaintances.
(This story was produced with support from Internews Sri Lanka)
PHOTO Venura Chandramalitha