1. Workmen’s Compensation System in Sri Lanka
Country Report
Workmen’s Compensation System in Sri Lanka
By Shirley Amarasekara
LL.B LL.M (SriLanka), LL.M. (Belfast)
Attorney- At-Law,
Commissioner for workmen's Compensation

2. Introduction
Population is nearly 20 million – work force 8 million (approximately)
Various Social Security Schemes – Loss of employment, health, injuries due to work related accidents.
Employment Injury – Compensation is one of the oldest labour welfare legislation
Transformation of traditional society to an Industrial Society. – frequent accidents.

3. Social Security Scheme in Sri Lanka
1. Government controlled
2. Private Insurance Companies
1. Government controlled – compulsory
EPF (Employees Provident Fund)
ETF (Employees Trust Fund)
2. Private Insurance Companies – Optional
Workmen’s Compensation Insurance
Regulated by Workmen’s Compensation Law
but optional,

4. Workmen’s Compensation Law in Sri Lanka
Enacted in 1934
Employer is bound to pay compensation to an employee for industrial accidents.
Liability:- If an employee meets with
i. an accident and
ii. arising out of his employment and
iii. in the course of his employment.
the employer is liable to pay compensation.
Occupational diseases also treated as an injury, if it is directly or reasonably attributable to the work.

5. Coverage Applies to any workman (Private or Public Sector)
Length of service
Size of the industry not relevant
Number of employees

6. Exceptions
A. (i) the employee under the influence of liquor at the time of the accident.
(ii) willfully neglecting or disobeying the instructions given by the employer
(iii) willfully remove or disregard the safety devices given by the employer.
B. trivial injuries – which last less than three (3) days.

7. Procedural steps for claiming Compensation
(i) must have informed the employer of the accident
(ii) must make the claim within 2 years of the accident.
But the commissioner has the discretion to admit any claim irrespective of the above conditions, if the employee shows a “reasonable cause”.

8. Amount of Compensation
Depends on the average monthly wage of the employee.
Corresponding amounts are prescribed by law
maximum at present is Rs. 550,000/-

9. Administration of Workmen’s Compensation system
Commissioner for Workmen’s Compensation
Additional Commissioner
Deputy Commissioner
Accounts
unit
Compensation
Unit
Administration
unit

10. Process of Awarding Compensation
Claim by the employee (or dependants in case of death)
answer by the employer
If admits the liability order the amount to be paid
If denies liability Judicial inquiry by calling witnesses

11. In a case of injury:- In a case of death:-
The amount ordered can be either paid to the employee or deposit with the commissioner to be paid to the employee
In a case of death:-
The amount to be deposited with the commissioner to be distributed among the dependants.
minor dependants share is deposited under commissioner’s custody till they attain 18
delay in payment of Compensation entails a 10% surcharge.

12. Payment of Compensation through Insurance
not compulsory
regulated by workmen’s Compensation law
non contributory by the employee
Initiated by the employer and premium must be paid solely by the employer
If Insurance pays a lesser amount than the prescribed, the employer is liable to pay the balance.
a license has to be obtained from the Commissioner to operate such insurance.

13. Conclusion Towards a compulsory Insurance Scheme (a) earlier situation
application of common law
rigid principles
difficulty in claiming Compensation
(b) Introduction of special laws of Workmen's Compensation
an adversarial process
though it is easier than the common law- mighty employers can edge out of the employees
(c) Introduction of Compulsory Insurance Schemes
ease the burden of both employees and employers
do away with adversarial process

14. AMOUNT OF COMPENSATION
Annex 1
AMOUNT OF COMPENSATION
(1)
Monthly wage of the workman injured
(2)
Death of workmen
(3)
permanent total disablement of workman
(4)
Half-monthly compensation for temporary disablement of workman
Rs Rs.
,500
2, ,000
5, ,500
7, ,000
10, ,500
12, ,000
15, ,500
17, ,000
20, and above
Rs.
181,665.00
258,640.80
330,968.00
407,427.90
478,495.60
522,495.60
549,631.50
550,000.00
196,083.80
295,075.00
351,461.00
444,494.60
519,593.80
1,320.00
1,804.00
2,186.80
2,733.50
3,231.80
3,561.80
3,890.70
4,221.80
5,500.00

15. SCHEDULE 1
LIST OF INJURIES DEEMED TO RESULT IN PERMANENT/PARTIAL DISABLEMENT
Injury Percentage of loss

16. Office of the Commissioner for Workmen’s Compensation
Claims received within the year – 2010
01. Total No. of claims (fatal)
02. Total No. of Temporary disability claims
03. Total No. of Permanent disability claims
100% disability - 03
75% %
60% - 75%
50% - 60%
25% - 50%
5% - 25% 84

17. THANK YOU