The persistence of the gender pay gap (GPG) in most countries around the world represents one of the clearest indications of the existence of gender inequalities in the labour market. Addressing it is vital from both a social justice perspective as well as from the perspective of economic prosperity. Indeed, in addition to generating inequalities in the labour market, the presence of a large and unexplained GPG can also create disincentives for women to enter the labour force and progress in their careers, whereas the presence of composition effects that could in part explain the GPG highlights the failure of the labour market and society at providing women and men with the same opportunities in the world of work. Tackling the GPG can thus contribute towards an inclusive and equitable labour market as well as the promotion of female empowerment and sustainable development for all.

This report aims to contribute to the ongoing debate, and to set a roadmap towards reducing the GPG in the case of Sri Lanka. The report undertakes a quantitative and qualitative investigation of the extent and nature of the GPG in Sri Lanka between 2013 and 2021, with a specific focus on the year 2019. The quantitative findings are based on the analysis of the Labour Force Survey (LFS) data collected by the Department of Census and Statistics. The methodology follows the empirical approach adopted by the ILO to study the global, regional and country specific GPG using data from countries that cover about 80 percent of wage employees worldwide (ILO 2018). The report complements these quantitative findings through a range of qualitative perspectives from both primary and secondary sources. In particular, the report reviews the existing legal and policy framework that is present in Sri Lanka to combat the GPG. Additionally, the report summarises the results of interviews undertaken with national stakeholders on the existence and drivers of gender wage inequalities in the country.