Evolving HR Practices in Sri Lanka: Challenges, Opportunities, and Strategic Transformation

 




Introduction

Human Resource Management (HRM) in Sri Lanka is undergoing a major transformation driven by rapid technological advancements, globalization, and changing employee expectations. Traditionally viewed as an administrative function, HR is now evolving into a strategic partner that contributes directly to organisational success. According to Karunarathna and Weligamage (2018), strategic HRM plays a crucial role in enhancing organisational performance by aligning people practices with business goals.

The increasing integration of digital tools has accelerated this shift, with many Sri Lankan organisations adopting Human Resource Information Systems (HRIS) to enhance efficiency and promote data-based decision-making (Gunawardane, 2022). Simultaneously, sustainability has emerged as a key HR priority, with Green HRM practices encouraging environmentally responsible behaviour and improving employee engagement (Weerasooriya, Rebecca and Jawad, 2024).

In today’s context, Sri Lankan organisations are focusing more on talent development, digital HR systems, and sustainable HR practices to remain competitive. The modern HR professional is expected not only to manage workforce operations but also to shape culture, support innovation, and guide business strategy. This blog explores how HR practices in Sri Lanka are evolving, the challenges faced by HR professionals, and the opportunities available for creating a more strategic and future-ready HR landscape.


Evolving HR Practices in Sri Lanka

HR professionals in Sri Lanka are now integrating digital solutions such as HR Information Systems (HRIS)
and HR analytics to improve decision-making and efficiency. However, Gunawardane (2022) noted that
many Sri Lankan organisations struggle with HRIS adoption due to limited management support and inadequate training.
This highlights the importance of leadership commitment and employee capability-building in the digital HR journey.

Talent management has also become a priority in both public and private sectors.
According to a comparative study by Jayalath (2025), Sri Lankan organizations are focusing more on identifying and developing high-potential employees to ensure long-term competitiveness.
Similarly, Weerasooriya et al. (2024) emphasized the emerging trend of Green HRM—where HR policies promote environmental responsibility, leading to higher employee satisfaction and organizational citizenship behavior.

Challenges in Sri Lankan HRM

Despite progress, challenges persist. Many firms still perceive HR as an administrative support function rather than a strategic partner (Dharmasiri, 2006). This perception limits HR’s influence in business decision-making. Additionally, implementing HR technology remains difficult due to budgetary constraints and lack of technical expertise (Gunawardane, 2022). Forecasting human resource demand is another challenge in Sri Lanka’s dynamic socio-economic environment (Jayalath, 2011). Overcoming these challenges requires leadership vision, policy alignment, and a focus on workforce capability development.

Opportunities and the Way Forward

There are significant opportunities for HR to lead strategic transformation in Sri Lanka.
As organisations adopt digitalisation and sustainability, HR departments can champion initiatives such as employee well-being, diversity, and inclusive growth. Karunarathna & Weligamage (2018) argue that aligning HR strategies with business goals can significantly enhance firm performance. Furthermore, data-driven HR analytics can enable real-time decision-making and measurable impact on organisational outcomes.

Conclusion

The transformation of HR in Sri Lanka reflects a shift from administrative management to strategic partnership. HR professionals who embrace technology, sustainability, and data-driven practices will drive future organisational success. By addressing challenges in perception, technology, and capability, Sri Lanka’s HR sector can play a vital role in shaping a resilient, innovative, and globally competitive workforce.

 

 

 

References

  •  Gunawardane, G. (2022) The Impact of HRIS Adoption on Organisational Performance in Sri Lanka. Colombo: University of Sri Jayewardenepura Press.
  • Karunarathna, P. and Weligamage, S. (2018) Strategic Human Resource Management and Organisational Performance in Sri Lanka. KJHRM Journal, 3(2), pp. 45–58.
  • Weerasooriya, R., Rebecca, N. and Jawad, S. (2024) Impact of Green Human Resource Management Practices on Organisational Citizenship Behaviour. RSIS International Journal of Research and Innovation, 11(1), pp. 12–19.


Comments

  1. Razi JalaldeenOctober 28, 2025 at 6:08 AM

    It seems good

    ReplyDelete
  2. Dilmini WanigasekaraOctober 29, 2025 at 10:53 AM

    It’s fascinating to see how Sri Lankan organizations are beginning to embrace digital HR platforms, especially after the pandemic accelerated remote work adoption. However, many HR departments still use manual systems for recruitment, payroll, and performance management. The real challenge now is not just investing in HR tech but ensuring that HR professionals are trained to use analytics and automation tools effectively. A data driven HR approach could transform how local companies identify talent gaps, track engagement, and plan succession. Digital literacy among HR teams will be key to achieving this transformation sustainably

    ReplyDelete
  3. MN7234ES: Ishanka WickramasingheNovember 1, 2025 at 7:29 AM

    Very informative! Embracing technology and sustainability in HR can really transform organizations if implemented properly

    ReplyDelete
  4. Kalani BinushaNovember 4, 2025 at 7:30 AM

    The emphasis on digital adoption, sustainability, and aligning HR with business goals gives useful insight for institutions like mine.

    ReplyDelete
  5. GihaniNovember 4, 2025 at 8:28 PM

    Great insights! It’s clear that HR in Sri Lanka is moving beyond administrative tasks to become a strategic partner, leveraging technology, sustainability, and data. Overcoming challenges like skill gaps and limited support will be key to building a competitive, future-ready workforce.

    ReplyDelete
  6. niroshaniNovember 7, 2025 at 9:43 AM

    This blog clearly shows how HR in Sri Lanka is evolving into a strategic role. It highlights both the challenges, like limited recognition and technical gaps, and the opportunities for HR to drive digitalization, sustainability, and talent development, which can greatly improve organizational success.

    ReplyDelete
  7. Irham ImtiyasNovember 19, 2025 at 1:54 AM

    This is a very insightful exploration of how HR practices in Sri Lanka are evolving amid both challenges and opportunities. I appreciate how you discuss the need for strategic transformation, highlighting the role of technology, employee engagement, and talent management in shaping modern HR. Your blog effectively captures the balance between addressing traditional organizational constraints and embracing innovative approaches to build more agile and competitive workplaces. This perspective provides a clear understanding of how HR can move from a transactional function to a strategic partner, driving long-term organizational growth in the Sri Lankan context.

    ReplyDelete

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