Employer-Supported Childcare in Sri Lanka: A Strategic Business Advantage

In Sri Lanka, a growing number of companies are recognizing that supporting employees with childcare options is not just a social good but a smart business decision. Research from the IFC and UNICEF highlights that employer-supported childcare can increase retention, loyalty, and productivity—especially among working mothers.

Unilever Sri Lanka Ltd.

Unilever Sri Lanka has been recognized for its on-site childcare facilities, offering a creche for employees’ children. The initiative, featured in the IFC and UNICEF report ‘Tackling Childcare: The Business Case for Employer-Supported Childcare in Sri Lanka’, shows measurable benefits such as reduced turnover and higher employee satisfaction.
Reference: https://documents1.worldbank.org/curated/en/401101549016702279/pdf/134216-WP-LK-Tackling-Childcare-CS-Unilever-PUBLIC.pdf

MAS Holdings

MAS Holdings, one of Sri Lanka’s largest apparel manufacturers, provides employer-supported childcare facilities that have helped reduce absenteeism and turnover. According to the IFC/UNICEF report, absenteeism due to sick leave fell by 9% within eight months of introducing childcare at one factory.
Reference: https://www.ft.lk/Columnists/Expand-employer-backed-childcare-to-close-the-gender-gap-in-Sri-Lanka/4-682189

Brandix Lanka

Brandix Lanka has implemented on-site and near-site childcare models that have proven beneficial for both employees and the business. According to a study by IFC and LMD, companies offering childcare reported higher retention and productivity rates among working parents.
Reference: https://lmd.lk/private-sector-companies-in-sri-lanka-that-provide-childcare-support-gain-significant-business-benefits-finds-ifcs-new-report/

Why Employer-Supported Childcare Matters

Employer-supported childcare leads to:
– Lower turnover and higher maternity-return rates.
– Reduced absenteeism and disruption costs.
– Improved productivity and employee morale.
– Greater gender inclusion and workplace diversity.

Reference: https://documents1.worldbank.org/curated/en/592911549024197620/pdf/134219-WP-LK-Tackling-Childcare-Main-Report-PUBLIC.pdf

Sri Lankan Context

Sri Lanka’s female labour force participation remains at around 36%, compared to 76% for men. According to IFC, addressing barriers such as childcare could increase GDP by up to 20% in the long run.
References:
https://www.ft.lk/Columnists/Expand-employer-backed-childcare-to-close-the-gender-gap-in-Sri-Lanka/4-682189
https://www.ifc.org/en/insights-reports/2018/tackling-childcare-in-sri-lanka

Conclusion

Companies like Unilever, MAS Holdings, and Brandix have proven that childcare support is not an expense but an investment in people and performance. The future of Sri Lankan workplaces depends on creating environments where both men and women can thrive as professionals and parents.

References

1. International Finance Corporation & UNICEF. (2018). *Tackling Childcare: The Business Case for Employer‑Supported Childcare in Sri Lanka.* Retrieved from https://www.ifc.org/en/insights-reports/2018/tackling-childcare-in-sri-lanka
2. UNICEF Sri Lanka. (2018, December 12). *Private sector companies that provide childcare support gain significant business benefits, finds new IFC‑UNICEF report.* Retrieved from https://www.unicef.org/srilanka/press-releases/private-sector-companies-provide-childcare-support-gain-significant-business
3. Financial Times Sri Lanka. (2019, July 19). *Expand employer‑backed childcare to close the gender gap in Sri Lanka.* Retrieved from https://www.ft.lk/Columnists/Expand-employer-backed-childcare-to-close-the-gender-gap-in-Sri-Lanka/4-682189
4. International Finance Corporation. (2018). *Tackling Childcare: The Business Case for Employer‑Supported Childcare in Sri Lanka — Executive Summary.* Retrieved from https://documents1.worldbank.org/curated/en/210421549019372773/pdf/134218-WP-LK-Tackling-Childcare-Executive-Summary-PUBLIC.pdf
5. MAS Holdings. (2024). *Impact Report 2024.* Retrieved from https://masholdings.com/impact_report/2024/services/pdf/MAS_Holdings_Impact_Report_2024.pdf

Other Sri Lankan Companies Supporting Childcare

Beyond Unilever, MAS Holdings, and Brandix, several other Sri Lankan employers have taken steps to support working parents through on-site or nearby childcare facilities and partnerships:

• Standard Chartered Bank Sri Lanka: The bank operates a crèche called “Kidkare” at its Colombo office for employees’ children aged approximately 6 months to 11 years. This facility reflects a commitment to employee well-being and retention. (Sources: Institute of Policy Studies Sri Lanka; Daily FT; IFC)

• WSO2: The tech company has partnered with childcare centres such as Ceebees to help employees manage childcare needs near the workplace. This partnership model offers flexibility and convenience for working parents in the tech industry. (Source: Daily FT)

• Hemas Holdings PLC: Hemas has implemented a pilot “back-up childcare” initiative at its headquarters to support employees when regular childcare arrangements fail. This empathetic approach enhances employee satisfaction and demonstrates progressive workplace policy. (Source: Daily FT)

Additional References

1. Daily FT. (2019). *Expand employer‑backed childcare to close the gender gap in Sri Lanka.* Retrieved from https://www.ft.lk/Columnists/Expand-employer-backed-childcare-to-close-the-gender-gap-in-Sri-Lanka/4-682189
2. Institute of Policy Studies of Sri Lanka (IPS). (2021). *Employer-Supported Childcare: A Solution to Labour Shortages in Sri Lanka.* Retrieved from https://www.ips.lk/talkingeconomics/2021/07/26/employer-supported-childcare-a-solution-to-labour-shortages/
3. International Finance Corporation (IFC). (2018). *Tackling Childcare: The Business Case for Employer‑Supported Childcare in Sri Lanka.* Retrieved from https://www.ifc.org/en/insights-reports/2018/tackling-childcare-in-sri-lanka