Sweeping benefits for women from 2019 Budget

Finance Minister Mangala Samaraweera presented his second budget titled “Empowering the People, Nurturing the Poor” yesterday in Parliament. Many women’s chambers have commended the many proposals that were included to promote participation of women.

Chiranthi Cooray, Chief Human Resources Officer of Hatton National Bank, at a pre-budget forum organised by Daily FT last year, spoke broadly on human capital-based challenges at national level. She acknowledged the serious lack of women participation in the labour force and highlighted women’s duties as primary caregivers as a key impediment on the participation of women in the labour force.

Samaraweera pointed out that although the female student population at our universities constitute almost 50% or more, women constitute only about 30% of the labour force, often making them financially dependent and thereby dis-empowered. He said that the lack of child and elderly care facilities and inflexible labour laws to be the reasons that women leave the labour force or never enter it at all.

As a solution, Samaraweera said that commercial establishments with more than 250 employees will be directed to provide child-care facilities. Furthermore, selected schools will be supported to establish After-School and Vacation Centres (ACVC) within the school itself, while the private sector will also be facilitated to establish child-care facilities, through the “Rekawarana” Concessionary Loan Schemes of “Enterprise Sri Lanka.

Minister Samaraweera said that the Government will encourage the private sector to support the country’s working mothers, by allowing 50% of the salary cost of the mandatory 3 months maternity leave granted, as an additional deduction, in calculating their corporate taxation, subject to a maximum of Rs. 20,000 per employee per month.

“We will extend this to an additional deduction of 100%, for the 4th month of maternity leave, if so granted. The concession would apply for a 5-year period”, he added.

Samaraweera also said that whilst constituting over 50% of the population, the presence of women in senior positions in business is very limited.

“This has come about due to, numerous social structural and business practices, that result in the exclusion of women from important decision-making roles in society. As such, I propose a sequenced approach to enable greater participation of women in boards of listed companies. The Securities and Exchange Commission will be encouraged to implement this proposal”, he said.

Samaraweera also said that he will lobby the House to support amending the labour laws to allow part- time, flexi hours, home-working, etc., which will facilitate more women to be active participants in our economy.

Last year, for the first time in Sri Lanka,  Samaraweera appointed three women as heads of three leading state media Institutions in the country. He also appointed two women to head the Excise department and Customs department, two of the biggest institutions that bring revenue to the government.