Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post
Market Place

Add an ad

View all ads

Latest topics

» RENUKA CAPITAL PLC KZOO.N0000@2.80
by Teller Today at 4:53 am

» Time for BFN -ACME - LDEV -BALA
by Teller Today at 4:45 am

» CBSL to reduce lending rates further to help SMEs
by Teller Today at 4:42 am

» Guys Look for DPL@5.20
by fireshelter Yesterday at 10:53 pm

» LLUB Pattern reversed. Good buy @60, target +20%
by EquityChamp Yesterday at 8:37 pm

» Why AAIC Should trade above RS.50/-
by wisdom79 Yesterday at 8:33 pm

» Look APLA its trending to 98LKR
by EquityChamp Yesterday at 11:56 am

» SLTL should touch 30/-
by Teller Sat Jul 20, 2019 9:29 pm

» Sri Lanka Dialog Axiata net profits up 21-pct in June quarter
by EquityChamp Sat Jul 20, 2019 9:14 pm

» RCL.N0000 - Trading at a discounted prcice.
by EquityChamp Sat Jul 20, 2019 9:07 pm

» Will ACME touch the peak in this week.?
by wisdom79 Sat Jul 20, 2019 7:21 am

» SFIN.N will hit Rs 15.50 today
by Teller Sat Jul 20, 2019 5:15 am

» CSE BULLISH MODE TO CONTINUE
by Yahapalanaya Fri Jul 19, 2019 9:34 pm

» AEL lovers good news..Rusi again back on the track to AEL....
by samansilva Fri Jul 19, 2019 12:25 pm

» TKYO.X0000 will it move furthur?
by MarketRambo Fri Jul 19, 2019 10:24 am

» Softlogic Eyes Asia, Africa For Expansion
by Capton KIng Cool Fri Jul 19, 2019 9:02 am

» Tommorow's winning encounters
by Winner123 Thu Jul 18, 2019 9:19 pm

» lOFC definitely will hit 6/-
by fireshelter Thu Jul 18, 2019 5:29 pm

» BFN BFN BFN ගොන් කම අත ඇරල ටික කාලයක් අල්ලන් හිටියනම් ඔක්කොමලා ගොඩ BFN BFN BUY AND HOLD -
by sanjulanka Thu Jul 18, 2019 3:38 pm

» Market will test 4700
by Promoney Thu Jul 18, 2019 10:38 am

» NEXT RUN People's leasing and Finance WAIT AND WATCH ENJOY RIDE..
by karuna2 Thu Jul 18, 2019 1:07 am

» SFIN.N will be the next bull run
by Bakka1988 Wed Jul 17, 2019 4:33 pm

» Next super star SINGER FINANCE..
by samansilva Wed Jul 17, 2019 9:49 am

» LOFC -XR big transaction
by Promoney Tue Jul 16, 2019 10:03 am

» Momentum will begin after 5400
by prabath Tue Jul 16, 2019 8:12 am

» WATA future looks good
by Teller Tue Jul 16, 2019 3:36 am

» RICH is not bad @ 9/-
by Teller Tue Jul 16, 2019 3:33 am

» Look PAP Amazing company
by Teller Sun Jul 14, 2019 1:03 am

» NEXT GEM.. HNB Non voting (HNB X)..
by samansilva Sat Jul 13, 2019 11:20 pm

» LIOC upward curve
by samansilva Sat Jul 13, 2019 11:17 pm

» IDL IDL IDL
by samansilva Sat Jul 13, 2019 10:15 am

» No Confidance motion against the Government was defeted by 119 and 92 against. 13 Absent
by Capton KIng Cool Fri Jul 12, 2019 9:28 am

» Contact us for your bank instruments such as SBLC/BG/LC/MTN 100% Protected
by summitplc Thu Jul 11, 2019 10:04 pm

» Contact us for your bank instruments such as SBLC/BG/LC/MTN 100% Protected
by summitplc Thu Jul 11, 2019 10:00 pm

» PAN ASIA POWER
by Nuwan Samarawickrama Thu Jul 11, 2019 9:58 pm

» Today JVP's No confidance motation in the Parliment is Very cruicial .WHY?
by Yahapalanaya Thu Jul 11, 2019 9:33 pm

» Sri Lanka’s Royal Ceramics group expands contract manufacture in India
by shameen Thu Jul 11, 2019 11:53 am

» CIND , 10% guaranteed return
by Teller Thu Jul 11, 2019 2:45 am

» BUY AEL Few crossings on the way..
by rukshan1234 Wed Jul 10, 2019 11:51 pm

» Unisyst Engineering Known as(Alufab) have annouced a right issue
by Capton KIng Cool Tue Jul 09, 2019 3:43 pm

» what is the future of KHL (JOHN KEELES HOTELS)
by shameen Tue Jul 09, 2019 1:48 pm

» 10 Deadly Trading Mistakes!
by ipo Tue Jul 09, 2019 10:15 am

» AIA Insurance Payment Method @ 2500/= per share
by Capton KIng Cool Tue Jul 09, 2019 9:16 am


You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » Sri Lanka and its cheap labor pool - Japanese Report

Sri Lanka and its cheap labor pool - Japanese Report

Go down  Message [Page 1 of 1]

MalcolmTurnbull


Equity Analytic
Equity Analytic
Factory worker pay slow to go up despite economy's steady growth

BY TOSHIHIRO MIZUTANI

When it comes to labor costs, Sri Lanka is a bargain, considering the size of its economy, according to statistics from the Japanese trade promotion organization known as JETRO.

Since the island's civil war ended in 2009, Sri Lanka's economy has been expanding. Its per-capita gross domestic product for 2015, as reported by the Central Bank of Sri Lanka, was $3,924 -- higher than the $3,377 in Indonesia, as released by Statistics Indonesia.

In contrast, a JETRO survey indicates that average salaries in Sri Lanka's manufacturing sector have not grown much. According to the 2016 survey among Japanese companies operating in Asia and Oceania, the average monthly base salary of a factory worker was $165. For a factory engineer, it was $396, and for a manager it was $720. These are all far below the equivalents in Indonesia -- $298, $449 and $993.

Even in Cambodia, whose per-capita GDP is roughly a third of that in Sri Lanka, manufacturing wages are comparable -- $175 a month for a factory worker, $391 for an engineer and $885 for a manager.

As factory wages are surging in the 10-member Association of Southeast Asian Nations, Sri Lanka's wage competitiveness could end up attracting Japanese companies.


"Could" is the keyword here. Sri Lanka's hospitality, restaurant and information technology sectors are sponging up the country's labor pool, leaving factories on the lookout for workers.

Foreign direct investment in Sri Lanka in 2015 fell 36.6% to $970 million. But for hotels and restaurants, FDI was up 2.7 times from the year before to $182 million, accounting for 18.8% of all direct investment. The number of foreign tourists to the country has expanded 2.7 times over a five-year period -- from 654,500 in 2010 to 1.79 million in 2015.

Manufacturing to services

According to JETRO's inquiries to factories in Sri Lanka, the demand for manpower in the country is shifting from manufacturing and other secondary industries to tertiary service industries. This is mainly the result of the government promoting the information technology sector as a base for the economy, as well as to increasing hotel and restaurant demand for workers.

To secure enough manpower, a Japanese company in the county began sending Sri Lankans to Singapore for six-month training sessions and giving them pay raises. During the training period, Sri Lankan workers are paid a special allowance in addition to their base salaries -- a big incentive, the company said.

Securing enough local workers is crucial, but foreign companies should bear one thing in mind when seeking to expand in the country: Sri Lanka's labor laws seem to be based on the standpoint of protecting workers.

It is even difficult to dismiss an employee who fails to properly fulfill his or her duties. There are also legal procedures that sop up significant amounts of time and expenses. To avoid hassles, it would be helpful to draft clear employment contracts or establish rules of employment, perhaps with help from legal professionals.

Toshihiro Mizutani is Deputy Director of the Asia and Oceania Division, Overseas Research Department, at the Japan External Trade Organization.

Courtesy - http://asia.nikkei.com/Politics-Economy/Economy/Sri-Lanka-and-its-cheap-labor-pool?page=1

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum