Sri Lanka is emerging from a period of social, economic, and political instability, beginning with the Easter Sunday attacks (2019), COVID-19 (2020-2021), and the economic crisis (2021-2023). Since declaring a unilateral debt standstill in April 2022, it has now concluded a debt restructuring plan with its creditors, backed by support from the International Monetary Fund (IMF). As attention now shifts from economic stabilisation to recovery and growth, the role of business in shaping the next phase of Sri Lanka’s economy is coming into focus. The new government is committed to facilitating the economic recovery and eradicating wastage and corruption.

The Maldives is heavily reliant on its tourism industry, which represents about 21% of GDP, and is the primary source of forex earnings. Out of the 130,000 migrant workers in the country, 35% work in the tourism industry, primarily in resorts. The pandemic compounded the deeply entrenched discrimination and abuse faced by migrant workers, exposing rampant trafficking, forced labour, wage theft, arbitrary detention, torture, and inhumane living conditions. Furthermore, resort workers are disproportionately restricted from exercising their fundamental rights to assembly, association, and expression, and have been deported for protesting against exploitation.

Business and human rights (BHR) is not new in these contexts, but has limited traction. For Sri Lanka, the main objective is to support the development of a normative framework for BHR. The formal adoption of the guidelines can shape future discussions and policy-making. For the Maldives, the objective is to review the current process in line with the UN Guiding Principles and the country’s international human rights and labour obligations. The proposed foundational action will help assess the interest and scope of future BHR activities. The limited traction of BHR in both countries underscores the need to initiate robust discussions and engagement from the public and private sectors.

European Union

15 February 2026 – 14 February 2028

• Centre for a Smart Future

Johannes Krusemark-Camin

Email: Phone: +49 (0)6221 91404 23 (See full profile)