Employee performance and welfare roles in Sri Lankan organizations

 



Introduction

As a developing nation, Sri Lanka continues to have an impact on all element of the lives of majority of its average citizens, including their quality of life, lifestyle, education, health, and retirement plans decided based on the income from employment.

In both government and private sector organizations in Sri Lanka, strengthening welfare facilities for employees is essential for their performance.

 

 


Welfare benefits provided by Sri Lankan organizations

Sri Lankan companies, provide welfare benefits to their employees can be categorized such as statutory and non-statutory. 


(a) Statutory Benefits:

Employees' Provident Fund (EPF) & Employees' Trust Fund (ETF):

Generally, EPF is governed by the EPF Act of 1958 (currently amended). Under this act, Employers and employees contribute 12 % and 8% of the monthly gross salary respectively) to this fund, which provides financial security upon retirement or in certain circumstances. 

Similarly, ETF is governed by the ETF Act No. 46 of 1980. The employer must contribute 3% of the monthly gross salary. This fund provides benefits to active members in case of total disability resulting in loss of employment. 

 

(b) Non-Statutory Benefits




Medical Insurance:

Some companies provide medical insurance policies to the employees and the family members.

e.g.: OPD & hospitalization insurance policy.

 

Workmen Compensation

These benefits can include financial assistance in cases of temporary, permanent disability to the employees or other benefits to the families of deceased employees.

 

Educational Assistance:

Some companies provide sponsorships to the employees for educational purposes or scholarships schemes for employees' children. 

e.g.: Brandix Sri Lanka - under the company’s employee welfare initiative, ‘Ran DaruThilina’ school children of employees received stationery packs (Dailynews, 2018)

 

Housing Loans and vehicle loans:

Some companies offer housing or vehicle loan schemes to employees. 

 

Other Benefits:

Companies may offer other benefits such as company-maintained accommodations, transportation, meals, compliments on wedding, newborn babies, financial assistance on death of family members, leisure packages to the families etc.



The significance of providing better welfare facilities.

Employee welfare may result in a significant impact in organizations.

 




Enhanced Employee Productivity and Performance

There is an associated relationship between employee welfare and productivity. Implementing employee welfare leads to a more motivated and ultimately productive workforce. A positive work environment that emphasizes employee welfare can significantly boost productivity levels (Livia, Ivana, 2025).

 

Employee Engagement and Satisfaction

Firstly, considering employee wellbeing into consideration creates a generally healthy work environment. Organizations which implement welfare programs and initiatives, such as flexible work schedules or mental health support services, establish an environment where employees may succeed on both a personal and professional level. In contrast, the workers are satisfied and engaged.

According to (Santhosh, 2024) engaged employees are enthusiastic about their work. They feel a connection to the company's mission and are invested in its success.

 

Positive Impact on Organizational Culture 

Organizations show their dedication to their employees' well-being through initiatives like welfare programs and flexible work schedules. This generates loyalty and trust among employees, which enhances the culture of the company.

 

Attraction and Retention of Talent

Potential employees are frequently attracted to companies offering significant benefits. This gives businesses access to the most talented people available. In the meantime, current employees remain with the organization for a long period.

According to (Blogs, Hr, 2024) in today's competitive business environment, retaining top talent is a priority for organizations across the globe. One of the most effective strategies to achieve this goal is through a comprehensive employee welfare policy.


 

Some of the Sri Lankan large organizations which invested on their employee welfare:

Brandix Sri Lanka – Provided 5700 employees’ children stationery packs.

Mas Holdings - Reiterates commitment to employee welfare, supports struggling communities in the apparel sector.

Aitken Spence – Enhancing 1400 individuals living standards and empowering them to be active contributors to the local economy.

Sri Lanka Bureau of Foreign Employment – Insurance coverage for migrant workers.




Conclusion


In today’s competitive business context, employee welfare in both public and private sector enterprises is unquestionably important in a nation like Sri Lanka. On the other hand, people make it possible to sustain a particular quality of life. Providing an enjoyable work environment and basic advantages is only one aspect of employee welfare. It includes establishing a work environment where staff members feel appreciated, encouraged, and inspired to perform at their highest level every day.

Employee welfare and well-being must be an organization's top priority. Individual employees gain from this, and it also has a positive impact on the organization's overall growth and success. Organizations benefit from increased performance and productivity by making investments in the welfare of their employees. Employees who feel satisfied with their work are more willing to go above and beyond in their jobs, which increases productivity and profitability.

 



References


Blogs, Hr, 2024. Hoshi. [Online]
Available at: https://www.hoshihrms.com/hr-blogs/employee-welfare-retention-policy
[Accessed 2 April 2025].

Dailynews, 2018. Sri Lanka Apparel. [Online]
Available at: https://www.srilankaapparel.com/brandix-launches-ran-daru-thilina-for-employees-children/#:~:text=This%20year%2C%20children%20of%204%2C971%20Brandix%20Associates,scheme%20titled%20'Ran%20Daru%20Scholarships'%2C%20under%20which
[Accessed 2 April 2025].

Livia, Ivana, 2025. A Job thing. [Online]
Available at: https://www.ajobthing.com/resources/blog/staff-welfare-to-increase-employee-productivity
[Accessed 2 April 2025].

Santhosh, 2024. Culture monkey. [Online]
Available at: https://www.culturemonkey.io/employee-engagement/employee-engagement-vs-employee-satisfaction/
[Accessed 2 April 2025].

Comments

  1. Dulanjali YapaApril 21, 2025 at 10:36 AM

    This blog skillfully examines how employee welfare affects performance in Sri Lankan businesses, offering concrete examples and tying welfare initiatives to increased involvement and productivity. Employee testimonies, implementation issues, and legal compliance with Sri Lankan labor regulations might all be included to improve the material. The post would become more thorough and relatable with these additions.

    ReplyDelete
  2. Kaushalya GayaniMay 1, 2025 at 10:09 AM

    This blog offers a comprehensive overview of how employee welfare practices in Sri Lanka directly contribute to improved performance and long-term organizational success. The inclusion of both statutory and non-statutory benefits adds practical value.Given the increasing importance of mental health and work-life balance, how can more Sri Lankan organizations, especially SMEs, start incorporating low-cost but high-impact welfare initiatives into their HR strategies?

    ReplyDelete
    Replies
    1. HilmyHRM BlogMay 4, 2025 at 6:42 AM

      By encouraging flexible work schedules, regular breaks, support from fellow employees groups, mental health awareness training, and an open, recognizing work environment, Sri Lankan SMEs may promote mental health and work-life balance at a low cost.

      Delete
  3. Dilhani KarunanayakeMay 3, 2025 at 9:17 PM

    This blog post made it clear that supporting employees goes beyond simply fulfilling obligations, it's about genuinely valuing people and fostering a positive work environment. I particularly appreciated the Sri Lankan examples like Brandix and MAS, which made the ideas feel practical and inspiring. Still, it left me wondering, how can smaller businesses with limited budgets create a similar meaningful impact for their employees?

    ReplyDelete
    Replies
    1. HilmyHRM BlogMay 4, 2025 at 6:43 AM

      SMEs in Sri Lanka can have a significant impact by emphasizing open communication, supporting staff well-being without burdening budgets, rewarding employee accomplishments, providing flexible work schedules, encouraging a positive workplace culture, and collaborating with neighborhood NGOs or free wellness initiatives.

      Delete
  4. Abhiru WeerageMay 4, 2025 at 6:59 AM

    Thank you for highlighting such an important topic. Employee welfare plays a crucial role in shaping the success of Sri Lankan organizations, both in the public and private sectors. As you rightly mentioned, it’s not just about providing basic benefits—it’s about creating a supportive environment where employees feel valued, motivated, and empowered to perform at their best.

    Prioritizing employee well-being leads to higher satisfaction, which in turn drives productivity and long-term organizational success. Investing in welfare is no longer optional; it's a strategic necessity for any organization aiming for sustainable growth.

    ReplyDelete

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