E/C.12/LKA/CO/5 through third party agencies, which for permanent workers results in lower wages, fewer benefits and exclusion from unions. It is also concerned about the limited number of labour officers and inspectors in the industrial and service sectors, and a lack of dedicated resources for effective monitoring and inspections (art. 7). 30. The Committee recommends that the State party take steps to progressively regularize the informal economy, while ensuring that workers in the informal economy enjoy their economic, social and cultural rights, in particular adequate wages and social security, and may join trade unions. It also recommends that the State party increase the number of labour inspectors. The Committee draws the State party’s attention to ILO Recommendation No. 204 (2015) concerning the transition from the informal to the formal economy. 31. The Committee is concerned that, despite the amendments to the National Minimum Wage of Workers Act in 2016, the minimum amounts for the monthly wage and daily rate are not sufficient to ensure a decent living and the Act does not provide for a mechanism for effective enforcement and periodic revision of the minimum wage. The Committee is also concerned that the Act does not cover workers in the informal economy, those not unionized, those on daily wages (for example plantation workers) and domestic workers (art. 7). 32. The Committee urges the State party to systematically review the national minimum wage with a view to setting it at a level sufficient to provide all workers and their families with a decent living. It also recommends that the State party ensure that workers in the informal economy are covered by the minimum wage. Right to form and join trade unions 33. The Committee is concerned about reports that union activists and officials remain subject to harassment and retaliation, including transferral or unfair dismissal. It is also concerned that the constitutional right to join a trade union is limited to citizens of the State party (art. 8). 34. The Committee recommends that the State party ensure that workers enjoy their trade union rights without undue restrictions or interference, and urges it to effectively investigate all allegations of violations of trade union rights. It also recommends that the State party take steps to ensure that migrant workers have the right to join trade unions freely and to take part in trade union activities. Social security 35. The Committee is concerned that the allowances of the main social assistance programme, Samurdhi, are insufficient and that mandatory deductions are imposed, such as in the case of savings, which lowers the allowances paid. The Committee is also concerned about reports that the State party envisages a reduction in the number of recipients by 10 per cent annually from the end of 2017 and that reforms of the current social protection system include exit incentives through the offering of livelihood loans at 5 per cent interest, which will increase the risk of debt burdens (art. 9). 36. The Committee recommends that the State party, through its reforms of the social protection system, ensure universal social security coverage and sufficient benefits for all persons, including those from the most disadvantaged and marginalized groups, so that they may enjoy a decent standard of living; and that it set a social protection floor that includes basic social security guarantees. It draws the attention of the State party to its general comment No. 19 (2007) on the right to social security and its statement on social protection floors (2015). 37. The Committee is concerned that the compulsory welfare insurance scheme operated by the Sri Lanka Bureau of Foreign Employment does not cover certain costs that may be incurred by migrant domestic workers in receiving countries, including medical expenses within receiving countries, illness or injury sustained in escaping from abusive work situations, and sexually transmitted diseases, including HIV. The Committee is also concerned that the two-year period of insurance coverage may result in migrant workers not 5

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