The ILO played a catalytic role in strengthening the care economy in Sri Lanka through cooperative development by leading policy dialogue, capacity building, evidence generation, and pilot implementation. Specifically, the ILO convened national and provincial cooperative authorities, built consensus on care cooperatives, conducted a national assessment, supported union‑backed pilot cooperatives, delivered targeted training programmes, and collaborated with the Cooperative Development Department to launch model by‑laws, enabling scale‑up and sustainability.
II-1 Justification of the initiative
The promotion of care cooperatives in Sri Lanka is justified by persistent structural gaps in the country’s care system. The majority of care work remains unpaid and is predominantly undertaken by women, constraining their labour force participation and reinforcing gender inequalities, while paid care work is largely informal, underpaid, and excluded from social protection. At the same time, formal long‑term and community‑based care services are scarce, particularly outside urban centres. This gap is becoming increasingly critical as Sri Lanka faces rapid population ageing, with one in four Sri Lankans projected to be elderly by 2041. Care cooperatives offer an inclusive, community‑based model to expand access to care services, formalize care work, and create decent and sustainable employment, especially for women.
II-10 Focus on other branches of economic activity
No sectoral focus
II-11 Focus on certain categories of enterprises or economic units according to their size
Cooperatives
II-11 Focus on certain categories of enterprises or economic units according to their size
Social enterprises
II-11 Focus on certain categories of enterprises or economic units according to their size
Other SSE entities (associations, mutual societies, foundations, self-help groups)
II-12 Focus on specific status in employment
Employees
II-13 Focus on other specific categories of workers and employers, not captured elsewhere
No specific categories of workers or employers
II-14 Focus on specific groups of population / persons prioritized in the initiative
Women
II-14 Focus on specific groups of population / persons prioritized in the initiative
Mothers
II-14 Focus on specific groups of population / persons prioritized in the initiative
Fathers
II-14 Focus on specific groups of population / persons prioritized in the initiative
Persons with other care responsibilities
II-15 Has the initiative been developed through effective social dialogue processes and inter-institutional coordination mechanisms?
Yes, through social dialogue
II-15 Has the initiative been developed through effective social dialogue processes and inter-institutional coordination mechanisms?
Yes, inter-institutional coordination mechanisms
II-2 Objectives and description of the initiative
The initiative aims to create decent jobs for care workers and provide affordable, high-quality care services to those who need them. It also opens opportunities for women to join the labour force, empowers women care workers by creating opportunities for better wages and working conditions, and supports the formalization of care work.
II-3 Type of initiative
Policy / strategy
II-3 Type of initiative
Project / pilot intervention
II-3 Type of initiative
Training/capacity building
II-4 Which of the Rs in the 5R Framework for Decent Care Work guides this initiative?
Recognition, reduction and redistribution of unpaid care
II-4 Which of the Rs in the 5R Framework for Decent Care Work guides this initiative?
Reward care workers
II-4 Which of the Rs in the 5R Framework for Decent Care Work guides this initiative?
Representation of care workers
II-5 Which is the main policy area of the 5R Framework for Decent Care Work does the practice focus on?
Care policies
II-6 Which other policy areas of the 5R Framework for Decent Care Work does the practice focus on?
Skills policies
II-7 Which policies or measures to advance decent work in the care economy does the practice focus on?
Formalization of informal care jobs and enterprises
II-7 Which policies or measures to advance decent work in the care economy does the practice focus on?
Addressing the undervaluation of care work by raising public awareness
II-7 Which policies or measures to advance decent work in the care economy does the practice focus on?
Addressing the unequal gender distribution of paid and unpaid work, and promoting women’s economic inclusion and autonomy beyond caregiving
II-7 Which policies or measures to advance decent work in the care economy does the practice focus on?
Create an enabling and conducive environment for sustainable enterprises and SSE entities
II-7 Which policies or measures to advance decent work in the care economy does the practice focus on?
Supporting micro, small and medium-sized enterprises and SSE entities that deliver quality care services
II-8 Which beneficiaries in the care economy does the practice focus on?
Unpaid carers (workers or persons with care responsibilities, parents, other family members, etc.)
II-8 Which beneficiaries in the care economy does the practice focus on?
Paid care workers (nurses, domestic workers, teachers, childcare workers, personal assistants, etc.)
II-8 Which beneficiaries in the care economy does the practice focus on?
Care recipients (children, older persons, persons with disabilities, etc.)
II-9 Geographical scope
Urban and rural
III-1 In a short paragraph, summarize the main results and impacts obtained
At the policy level, provincial and national cooperative authorities engaged in dialogue in May 2025 to build a shared understanding of the role that care cooperatives can play within the broader care system. This process contributed to formal commitments from provincial cooperative commissioners and the development of a draft national action plan on care cooperatives, which is currently being finalized.Capacity‑building initiatives focused on Sri Lanka’s two main cooperative training institutions through a two‑day training and awareness‑raising workshop. As a result, both institutions committed to integrating care cooperative concepts into their regular training programmes and to developing institution‑specific action plans.To strengthen the evidence base, a national assessment was conducted to examine the legal and operational feasibility of care‑related cooperatives and broader social and solidarity economy (SSE) models. The findings were validated in November 2025 through the participation of the government representatives including the ministry of labour, department of cooperatives, ministry of women and child affairs, employers' organizations, trade unions and social partners.At the implementation level, two pilot care cooperatives—one focused on childcare and another on home‑based and bedside care—were established with the active involvement of trade unions. Cooperative members participated in ILO's specialized training programmes, Think.CareCoop and Start.CareCoop, to support care cooperative development. Building on this momentum, the Health Department Thrift and Credit Cooperative approved the “SUWASETHA” initiative in June 2025 to pilot care services across five districts, with plans for national expansion. In parallel, model by‑laws for care cooperatives were introduced in August 2025 by the Department of Cooperative Development, providing a standardized framework to support replication across the country.
IV-1 What were the main challenges or difficulties during the design and implementation? How were they faced/ addressed?
A key challenge during the implementation of the care cooperative component was the limited financial sustainability and organizational capacity of cooperative members. Despite strong commitment and clear demand for services, many cooperatives lacked the technical skills needed to operate sustainably over the medium to long term—particularly in areas such as enterprise development, marketing, financial management, and internal governance.To address these gaps, targeted capacity-building measures were introduced, with a strong emphasis on practical, follow-up training. These efforts focused on strengthening business planning, diversifying services, improving access to markets, and reinforcing cooperative governance structures.At the same time, the initiative fostered closer collaboration between cooperative members and provincial cooperative departments. This resulted in sustained institutional support, including regular field visits, knowledge exchange, and financial assistance for cooperative expansion, helping to gradually strengthen both capacity and sustainability.
IV-2 Lessons learned and good practices, including room and opportunities for improvement
V-1 Sources of information and documents used on the characteristics of the initiative, including links to websites, news items, toolkits, policy documents or reports
Model by-laws unveiled as cooperative department commits to promote nationwide care cooperativesUnlocking the potential of care cooperatives in Sri Lanka
V-2 Contact information of ILO focal point
Marian Fernando, National Project Coordinator, ILO Care Project ([email protected])