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EmploymEnT, woRk, and hEalTh inEqualiTiEs - a global perspective<br />

1,719.8 in 2007 (WB, 2009). In the last three decades, economic<br />

policies have been geared towards creating a liberalised open<br />

economy. poverty rates are falling and less than 20% are be<strong>low</strong> the<br />

official poverty line. The country, however, is beset by a balance of<br />

payment deficit, a budget deficit and inflation. over the years, the<br />

economy has gradually transformed from an agricultural base to<br />

one dominated by the service sector. In 2006, the service sector<br />

contributed to 59.4 per cent of gDp, industries to 28.4 per cent, and<br />

agriculture to 12.3 per cent (Department of Census and statistics,<br />

2006). Contribution to economic growth is also dominated by the<br />

service sector (i.e. 70%).<br />

sri lanka' total labour force in the first quarter of 2008 was<br />

estimated to be around 7.5 million (excluding the north and east of<br />

the country). The rates of unemployment have declined from 10.5<br />

per cent in 1995 to 6.0 per cent in 2007, but with significant gender<br />

differences (4.3% for males and 9% for females). of the 7.15 million<br />

employed, 41.8 per cent are in the service sector, 31.8 per cent in the<br />

agricultural sector, and 26.4 per cent in industry. (Department of<br />

Census and statistics, 2008). The informal sector accounts for 59.6<br />

per cent of employment.<br />

The agricultural sector is the worst off. It accounts for 31.8 per<br />

cent of all employed people, where 82.2 per cent are in the<br />

informal sector as of 2008. The eighteen per cent of formally<br />

employed agricultural workers are mainly from the organised<br />

plantation sectors. These continue to be tea and rubber<br />

plantations, with the labour force having a preponderance of<br />

“Indian Tamils”. The government continues to play a dominant role<br />

in providing employment and has 813,000 employees (about 13% of<br />

the employed share), through state, provincial and semigovernment<br />

sector employment (Department of Census and<br />

statistics, 2006). The armed forces attracts youth, especially from<br />

rural areas.<br />

The country lacks a comprehensive social security scheme. The<br />

most secure are the public servants, as they are eligible for either a<br />

pension or the public service provident fund. The Employee's<br />

provident fund is available for the private sector, but only 67-69 per<br />

cent are covered (Institute of policy studies of sri lanka and Ilo).<br />

The least covered are workers in the informal sector and the selfemployed,<br />

e.g. the farmer's pension scheme and fisherman's<br />

pensions scheme covers only about 50-60 per cent.<br />

sri lanka's relative success in providing healthier and secure<br />

employment relations (while belonging to the “peripheral cluster”)<br />

can be traced to several factors such as a strong trade union<br />

108

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