ECONOMYNEXT – The International Finance Corporation (IFC) and the Colombo Stock Exchange (CSE) partnered for ‘Ring the Bell for Gender Equality’ event in Sri Lanka for the seventh consecutive year on Tuesday, celebrated in line with the International Women’s Day.
The annual global initiative highlights how greater participation of women
in the economy can spur sustainable and inclusive growth, shaping a more equal future.
“We believe this is the platform to convene business leaders, investors, and other key
parties at the national level to highlight the growing business and economic case for gender equality,” said Dumith Fernando, Chairman of the CSE.
“We at the CSE are encouraged to note that more of our listed companies have welcomed the participation of strong, independent women on their boards. This
is evident by a steady increase over the years in the number of listed companies with women holding corporate board seats.”
He said there are 96 new board positions that have been occupied by women since
2018.
“Even though we see a positive trend, we are still short of the regional markets. So, all of us, as policymakers in our respective corporates, are vested with the duty to encourage gender equality in our establishments.”
McKinsey Global Institute estimates Sri Lanka can potentially add $20 billion a year to its gross domestic product (GDP) by 2025 — increasing economic growth by about 14 percent, by improving female labor participation.
The female labor force participation rate remains stagnate at around 35 percent in Sri Lanka, compared with a steady male participation rate of 74 percent. Similarly, the average female unemployment rate (7 percent) remained more than double that of men (3 percent) between 2011 and 2019.
“Pushing for gender equality today is needed for a sustainable tomorrow. Research – including IFC’s – continues to demonstrate that gender diversity in the boardroom boosts financial performance, promotes better decision-making processes and improved environment, social and governance (ESG) practices,” said Lisa Kaestner, Country Manager for IFC Sri Lanka and Maldives.
“We need more women business leaders for an inclusive and resilient recovery in the country. I hope that companies and policy makers continue to commit toward accelerating the progress made to date.”
According to IFC research — under the IFC-DFAT Women in Work program — the number of women on CSE-listed boards increased from 8.2 percent in 2018 to 10.1 percent in 2022 (from 144 to 240).
However, this remains well below the global average of 20 percent.
Among the top 30 CSE-listed companies the correlation between increased board diversity and financial performance is clear, with positive trends being reported in line with indicators such as return on total assets and price-to-earnings ratio, an IFC report has highlighted. ‘
David Holly, the Australian High Commissioner for Sri Lanka participating in the event said Women in Work partnership is integral to the Australian government’s commitment towards advancing opportunities for women and boost economic growth in Sri Lanka.
“It is based on global evidence that greater diversity is good for business and the economy,” Holly said . (Colombo/March 8/2022)