Over the years, Sri Lanka has seen a rise in platform-mediated gig work. The Online Labour Index highlighted that as of 2024, Sri Lankan gig workers ranked among the top 15 countries worldwide when accounting for the share of workers on major online freelancing platforms. Workers in Sri Lanka are drawn to gig work for various reasons, with freedom and flexibility and the ability to supplement income being cited as key reasons. Although no national level study has been undertaken to understand the scale of gig-work in Sri Lanka, a study done by CSF found that over 50% of interviewed gig-workers operate on these platforms full time.
In the aftermath of compounding crises, it is expected that more workers started to register on these platforms in need of supplementary income. Despite the benefits that working in the platform economy brings, gig-work in Sri Lanka is precarious. From the COVID-19 pandemic, Sri Lanka’s economic crisis – to the more recent trends shaping gig work, this article explores the precarity of the Sri Lankan gig economy and the implications for the future of work.
Escaping crisis
Research conducted by CSF in the aftermath of the pandemic highlighted that restrictions on travel in the form of lockdowns and health concerns significantly impacted gig-workers engaged in ride hailing occupations. The series of lockdowns impacted livelihoods with workers having to survive many weeks without work and income, with workers also finding it difficult to adapt to the sudden halting of work. Although the crisis negatively impacted those operating in ride hailing and delivery, experts interviewed by CSF highlighted that the increased internet use across the country led to an increase in awareness of online work, and an increase in the number of individuals engaged in freelancing on platforms.
Sri Lanka’s economic crisis also had an impact on those engaged in the gig-economy. For those operating in ride-hailing and delivery sectors, the fuel shortage meant that many gig workers could not proceed with their operations, with many workers leaving the platform either permanently or temporarily to find other ways of earning an income. Those that continued to operate noted that they reduced their area of coverage, usually travelling shorter distances which negatively impacted their income. Delivery riders also noted a reduction in the orders they were getting owing to increased costs, and reduced number of deliveries being made.
For those operating on online freelancing platforms, frequent and lengthy power-cuts soon became a barrier to completing work. Interviewees noted that given the competitive nature of these freelancing platforms, inability to complete work in a timely manner impacted income and ability to get time sensitive opportunities via these platforms.
Despite the constraints of the crisis being less prevalent than they were three years ago, gig workers continue to work with increased precarity. Three key areas shaping this are algorithmic management of work, lack of social security and lack of employment safeguards.
Algorithmic management of work
Platforms use algorithms to manage workers and their work, which is referred to as algorithmic management of work, and is a key feature of how digital labour platforms operate. On platforms, algorithms are used for a range of functions such as to determine which worker gets allocated work; how much a worker gets paid; structure incentives and bonuses and also automatically implementing decisions such as deactivating workers from platforms who may cancel too many tasks or receive poor ratings.
In Sri Lanka, as workers aren’t usually made aware of what factors would help them get prioritised by the algorithm, whether its a higher star rating, or longer period of time operating on the application – workers usually find themselves guessing and trialling new tactics to try and be able to determine what factors are likely to give them more work. As a result, workers on gig platforms are operating under opaque conditions, without the clarity and the guidance they need to be able to maximise work and income on these platforms.
Worker rights and social protection
The second trend shaping the precariousness of gig work is the lack of social security afforded to gig workers. Unlike in a traditional employer-employee relationship, gig workers are classified as independent contractors, which limits their access to employment rights. As a result, gig workers in Sri Lanka do not have access to minimum wage, paid leave and job security. They also lack social protection such as pensions and unemployment benefits.
One of the most pressing social security gaps faced by workers is regarded as income replacement in the face of illness or disability. In Sri Lanka, this is particularly important given that CSFs research has highlighted that the majority of gig-workers operate on platforms full time without the benefits and protection that full time employment brings. As a result, workers are forced to work despite being ill, or under other circumstances or find other ways of earning money, in order to manage their income. Whilst some ride hailing and delivery platforms in Sri Lanka have introduced insurance schemes, such as Uber in partnership with Allianz for both drivers and passengers, this is not widespread in the platform economy, leaving many gig-workers at risk.
Safety and the lack of employment safeguards
The third trend exacerbating precarity is safety and the lack of employment safeguards. Gig workers, especially those who work in ride hailing or delivery are exposed to greater risk of injury through accidents, compared to those that work on online freelancing platforms. Gig-workers operating on geographically tethered platforms, have also highlighted that they also have to contend with extreme climate conditions such as intense heat or working in periods of heavy rain. In a recent study conducted by CSF, gig-workers noted facing skin irritation and dehydration due to extreme exposure to heat and navigating flooded roads during periods of heavy rain.
Given that not all platforms in Sri Lanka limit how long a gig-worker can work, gig workers have noted working longer hours in order to maximise income or meet incentive targets set by the platform. A recent study by the Solidarity Centre on gig workers in Sri Lanka highlighted that 93% of surveyed gig workers worked more than 11 hours of the day and 37% of surveyed gig workers operated more than 16 hours of the day.
Unlike employees, they lack protection from labour laws that regulate working conditions. Whilst employees are protected by local labour laws such as the Shop and Office Act or the Factories Ordinance Act, there are no protections afforded to gig workers who may have to work long hours or work in extreme conditions at a risk to their health.
Implications for the future of work
Globally, around these three areas of algorithmic management, social protection and safety – we are seeing increased regulation to provide workers with better support. Whilst countries in the Global North are looking to promote better working conditions for gig-workers, gig work in low to middle income countries is being presented as a way to increase labourforce participation without the safeguards that are needed in place to protect workers.
Whilst a blanket approach to regulating gig work can hamper platform innovation and may not fully extend to the nuances of gig work, countries have taken steps to protect workers from different aspects of gig work.
These examples highlight just a fraction of the evolving landscape of gig work regulation. As the platform economy continues to expand, striking the right balance between the flexibility that gig work offers and the protections needed to safeguard workers from its risks will be crucial. For Sri Lanka, this will likely become an increasingly important focus in the near future as the demands of the digital economy continue to grow.
Looking forward, at a national level we recommend relooking at existing policies and implementing new regulations to ensure that gig workers have fair wages, social security, and protections like health insurance and retirement benefits. The growth of the platform economy also provides a new role for traditional employer organisations to promote industry standards for fair pay, job security, and worker protections. However, ultimately the onus rests firmly on platform companies to improve working conditions of gig workers by offering better algorithmic transparency, fair payment policies and simpler and more transparent contracts in local languages.
Cover photo by Anushka Wijesinha for CSF
References:
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