In Sri Lanka, while women outnumber men slightly (52% versus 48%), and marginally more females are in state education, only one in three women of working age are employed. At boardroom level the difference is even more stark. According to the global development body the International Financial Corporation (IFC), in 2021 only 9.5% of directors in Sri Lanka’s listed companies were women – way behind South Asian peers such as India (17%) and Bangladesh (12%).
The 30% Club has highlighted the importance of improving women’s representation on boards and at senior level. The global business campaign group has made headway in a number of countries, including Malaysia, where its goal of achieving 30% female representation on Bursa Malaysia-listed boards has government backing.
Sri Lanka, however, is lagging behind. One of the key reasons behind this lack of representation is a need for work-life balance. In South Asia, managing the household and taking care of children, parents and in-laws have been traditionally designated as women’s roles, eclipsing career development.
The notion that women are not suitable for leadership roles can reflect a ‘confidence gap’
Narrative shift
This narrative is starting to change, however. In urban areas, men are increasingly sharing the household workload and parents are helping their daughters to break free from traditional expectations.
But equality in the boardroom is still a long way off. The notion that women are not suitable for leadership roles is not just a societal expectation but can also reflect a ‘confidence gap’. In her book Lean In: Women, Work and the Will to Lead, former Facebook COO Sheryl Sandberg discusses the tendency of women to underestimate their abilities, and concludes: ‘Women need to shift from thinking “I’m not ready to do that” to thinking “I want to do that, and I’ll learn by doing it.”’
Another 500 women directors on listed companies are needed for boardroom gender equality
While entry-level jobs in teaching, accounting and public relations are easily accessible to women, many companies expect their senior management team to be all male. They cite factors such as the need to work long hours or travel overseas, and the fixed perspective is that women are less available. Yet a Monash University study into why men still get the lion’s share of top jobs concludes that men receive more favourable evaluations and rewards than their equally effective female counterparts.
Many listed businesses in Sri Lanka are starting to address these issues. Several have introduced measures to promote gender diversity and support women in leadership positions. The conglomerate John Keells Holdings offers mentoring programmes for women leaders alongside flexible working for better work-life balance. Hatton National Bank has implemented gender-sensitive policies, including maternity leave extensions and returner support. Telco Dialog Axiata and conglomerate Aitken Spence also provide mentoring and coaching to nurture female leadership talent.
Meanwhile IT outsourcer Virtusa and clothing manufacturer MAS Holdings are participating in the local Sri Lanka network of the UN Global Compact, which focuses on improving workplace equality and encourages members to align their strategies and operations with 10 universally accepted principles in areas such as human rights, labour, the environment and anti-corruption. Virtusa has created regional diversity and inclusion councils to meet its global targets, and MAS Holdings aims to achieve a 50% gender balance at all management levels by 2025.
Pipeline buildout
In 2021, the Women Corporate Directors Foundation (WCD), a global body, set up a local chapter in Sri Lanka, sponsored by KPMG and the IFC. It provides a platform for Sri Lankan women board members to share industry expertise while helping the country expand its pipeline of female directors. According to the WCD, Sri Lanka needs an additional 500 women directors on publicly listed companies if it is to achieve gender equality in the boardroom.
Diversity is not only a matter of ethics but also a highly advantageous business strategy
Bringing women onto boards makes business sense too. The presence of women in leadership roles can improve financial decision-making and innovative strategies, contributing to overall financial success. Gender-diverse boards often foster a more inclusive and collaborative corporate culture, enhancing employee morale, engagement and productivity.
As Alfonso Garcia Mora, vice president for Asia and Pacific at IFC, points out, diversity is not only a matter of ethics but also a highly advantageous business strategy. IFC research shows that the 30 most gender-diverse companies listed on the Colombo Stock Exchange don’t just follow better environment, social and governance practices than the others – they also score higher on financial performance metrics such as revenue growth, profitability and return on investment.
