Highest COVID-19 job losses in export firms, says EFC 

Private sector workers in Sri Lanka’s formal sector are likely to lose jobs going forward amidst the COVID-19 pandemic with the highest number tipped to be from companies producing for export.

A recent survey carried out by the Employers' Federation of Ceylon (EFC) titled "An Initial Assessment of the Impact of COVID-19 on Employers" released on Thursday at a media briefing held at the EFC office in Colombo states that about 21 per cent in export sector category of workers are likely to lose jobs.

EFC Director General Kanishka Weerasinghe however, referred to the statistics released by the Labour Department on the job losses in terms of numbers stating that survey had indicated about 14,000 would lose jobs that is likely to increase to 25,000.
The EFC survey has been carried out on 100 of its members during the period April to May 2020 to understand the impact of COVID-19 on employers and recommendations to policy makers on managing the crisis.  
In addition about 9 per cent from the executive and non-executive grades will be laid off in addition to 19 per cent from producing for export and the domestic sector.
The impact of the COVID - 19 on foreign exchange earnings was highest in the accommodation and food services sector while small scale firms are said to have recorded the highest production and revenue losses.
Half of the 100 firms surveyed had recorded a serious cash flow problem; while 18 per cent noted they had sufficient cash flow for a period of one month; and 39 per cent stated that firms have sufficient cash flow for three months.
Exports companies were severely affected in carrying out their operations with most of the staff working from home, and one third of firms under survey were recorded to have completely suspended their operations; and half of the sample said some staff worked on site; while the food and agriculture sector had fared better. (SD)