Care economy
Model by-laws unveiled as cooperative department commits to promote nationwide care cooperatives
With the aim of expanding quality, affordable care services and creating decent jobs—especially for women, this initiative will promote formalization of care work in Sri Lanka and empower cooperatives with clear governance frameworks.
2 September 2025
Colombo (ILO News) — The Department of Cooperative Development, Ministry of Trade, Commerce, Food Security and Cooperative Development, Sri Lanka in collaboration with the ILO, officially launched model by-laws for care cooperatives on 26 August 2025, reinforcing their support to promote and expand setting up of care cooperatives and enabling existing cooperatives to start care services across Sri Lanka.
This initiative aims to create decent jobs for care workers and provide affordable and quality care services to those who need them. It also opens opportunities for women to join the labour force, empower women care workers creating opportunities for better wages and working conditions, and move towards formalization of care work. These bylaws will help the cooperatives to establish a strong governance and operational framework for care cooperatives nationwide.
“As the Cooperative Department, we are fully committed to supporting the development of care cooperatives in Sri Lanka. Whether it is through policy guidance, training, legal facilitation, or access to funding, we assure you of our fullest support. We believe that this model can complement our existing care infrastructure and bring real social and economic transformation,” said Ms. H.A. Asha Hapuarachchi, Commissioner of Co-operative Development and Registrar of Co-operative Societies.
The adoption of these model by-laws ensures that newly formed care cooperatives will have a clear, transparent, and accountable governance framework that empowers members and safeguards the sustainability of these institutions.
The care cooperative initiative was first launched in Sri Lanka by the ILO in March 2025 at a gathering of its tripartite constituents – government, workers, and employers. Since then, the partnership with the Department of Cooperative Development has grown significantly, strengthening the commitment to promote and expand care cooperatives across the country to meet the growing demand for care services for childcare, elderly care, hospital and infirm person care, and long-term care.
Building on this partnership, the ILO has carried out a series of initiatives in close collaboration with the Department of Cooperative Development, including a national policy dialogue with all provincial and national Cooperative Commissioners in July 2025, where a draft action plan was developed, as well as awareness-raising with key cooperative training institutes such as the National Institute of Co-operative Development (NICD) and the National Co-Operative Council of Sri Lanka (SLNCC).
Through these collaborative efforts, the Health Department Thrift and Credit Cooperative, inspired by its participation in the ILO’s Think.Care.Coop workshop and subsequent discussions, has decided to extend care services through its nationwide network. At its 60th General Body Meeting on 21 June 2025, it approved the “SUWASETHA” proposal to pilot care services in five districts by recruiting skilled recent retirees from the government health sector, with plans to scale up nationally.
Further, two union-backed care cooperatives are now in the pilot phase, supported by the Department of Cooperative Development and with the technical assistance from the ILO.
“Since the launch of this Care Cooperative initiative in March, 2025, we have already witnessed remarkable progress. This has been made possible through the steadfast partnership and commitment of Sri Lanka’s Department of Cooperative Development. Together, we are not only working to strengthen access to vital care services for families in need but also creating meaningful employment—especially for women—and advancing gender equality in the world of work. This is a powerful step toward a more inclusive and resilient Sri Lankan economy.” said Ms. Joni Simpson, ILO Country Director for Sri Lanka and the Maldives.
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