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The current labour legislation, which is considered to be archaic by donor agencies and investor community, prevents flexible employment policies being adopted by investors.
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These laws are also identified as a major competitive disadvantage for Sri Lanka when compared with more de-regulated labour markets in South East Asia.

rnrnldblquote Labour reforms are vital since the private sector and foreign investor community have expressed their frustration about the current labour regime dblquote , Samarasinghe said in an interview with Lanka Business Online.

rnrnldblquote We want to send a clear signal to the private sector that a conducive environment is available in Sri Lanka for investment dblquote , he said.

rnrnThe proposed insurance scheme is expected to provide a social safety net for re-trenched employees until they find new employment.

rnrnEmployers are likely to bear the cost of financing the scheme since it enables flexible employment policies that could maintain the overall profitability in dif

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