Limited fiscal space, growing service demands, etc., undermine institutional reform and economic recovery – Jt. statement

Limited fiscal space, growing service demands, and weak institutional dialogue mechanisms have placed public institutions under significant strain as Sri Lanka continues to navigate a challenging period of institutional reform and economic recovery, UN and Sri Lanka have said in a joint statement.

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They have stressed that the public sector remains both a key driver of national progress and the primary interface between citizens and the state.

The joint statement was issued following a high-level panel discussion that brought together government officials, public sector unions, development partners, and civil society actors under the theme “Building Bridges, Delivering Better: Advancing Social Dialogue in the Public Sector.”

The event was held on Monday (23) in Colombo to mark United Nations Public Service Day.

The event, organized by the United Nations in partnership with the Ministry of Public Administration, Provincial Councils and Local Government highlighted the critical role of public service in economic recovery and social cohesion, and the transformative potential of social dialogue to prevent conflict, strengthen institutions, and improve service delivery.

A joint UN initiative titled “Social Dialogue for Peace and Crisis Prevention”, implemented by the International Labour Organization (ILO), the United Nations Population Fund (UNFPA), and the United Nations Educational, Scientific and Cultural Organization (UNESCO), seeks to strengthen inclusive, gender-responsive mechanisms for dialogue and dispute resolution in Sri Lanka's public sector.