Employee Well-Being & Mental Health in Sri Lanka – How Companies Can Truly Improve ..

 

It is our emotional, psychological and social well-being that can affect how we think, feel and act. It also helps to determine how one handles stress, relates to others and makes healthy choices. A person can experience poor mental health without being diagnosed and likewise, a person diagnosed with mental illness can also experience periods of physical, mental and social well-being.  

Further it is important to understand how people can experience a build-up of the everyday stresses such as burnout, financial stress, dealing with the effects of a Covid pandemic or even fluctuations at work. Over time, chronic stress can lead to trauma, and when an individual is experiencing a mental health crisis, their ability to cope is affected. This state of disequilibrium can trigger depression, anxiety, and stress. However, when one is in a good state of mental health, it allows the individual to cope better with the normal stresses of life, to develop resilience in the face of extreme life events and disruptions and to work productively and contribute positively to the community. 

 

 

Sri Lanka has long been grappling with mental health challenges, with a significant portion of the population affected by mental health challenges. The World Health Organization (WHO) estimates that nearly 10 to 15% of Sri Lankans suffer from mental health issues, including depression, anxiety, and stress-related disorders. The suicide rate in Sri Lanka, though was decreasing, remained among the highest globally, with 14.6 per 100,000 people as of recent data.

Employee well-being has become one of Sri Lanka’s most urgent workplace priorities. After years of economic instability, rising living costs, heavy workloads and organisational restructuring, many employees are emotionally exhausted. The Institute for Health Policy Sri Lanka (2023) found that 1 in 4 employees reported symptoms of burnout, anxiety, or stress within a single year.

According to a survey conducted by the Deloitte, it was identified that more than 60% of professionals have experienced workplace stress at some point in their careers, with many of them reporting that it has affected their personal lives and work performance. This further backs up the fact that workplaces are not immune to the mental health struggles that many individuals face. Along with the increasing pressure to meet deadlines, the long working hours, and the competitive nature of many industries in the country, employees often do find themselves overwhelmed.

 

Key drivers for poor workplace mental health in Sri Lanka?

• Workplace Culture:

Many Companies still hold on to traditional thinking: longer working hours mean more productivity, personal life should not interfere with work.

These outdated beliefs are costing business more than they realized.

 Traditional workplace hierarchies, rigid expectations, and lack of work-life balance can create environments where employees feel pressured to perform at the cost of their mental health. Additionally, job insecurity and economic instability may have worsened these concerns.

• Lack of a structured program: Due to the limited awareness among the employers, a structured mental health program or wellness policies may not be available to support the workforce. The lack of understanding the importance of mental health in enhancing the employee productivity and overall business success may not support in imposing initiatives to uplift the wellbeing of the employee.

• Cultural Stigma: Mental health remains a taboo subject in the Sri Lankan society, where seeking help is often viewed as a sign of weakness. This cultural barrier prevents employees from opening up about their struggles which leads to underreporting of mental issues in the workplace.

 

Why It’s Time to Change

Here’s what happens when companies truly invest in wellbeing and work-life balance:
 

ü     Increased Productivity – Happy, healthy employees bring more energy and focus to their work. They perform better, think more creatively, and take fewer sick days.

ü      Higher Retention – When people feel cared for, they are more loyal. This reduces turnover, saving the company time and recruitment costs.

ü 
Better Employer Brand – In today’s world, job seekers care about culture. Companies known for caring about their people attract better talent.

ü 
Stronger Team Morale – Teams that feel balanced and supported work better together. Collaboration improves, and internal conflicts reduce.

ü 
Mental Health Protection – Ignoring work stress leads to burnout, depression, and even physical illness. Supporting mental health is not optional anymore – it’s essential.

 

How to improve the mental on the wellbeing of the employees;

Many organisations still approach well-being as a reactive activity, organising a single “wellness day,” a yoga session, or a motivational talk. While helpful, these initiatives don’t address the deeper structural issues affecting mental health: workload imbalance, poor leadership, communication, lack of recognition, and job uncertainty.

Younger generation, especially Millennials and Gen Z, are reshaping expectations. They value workplaces that prioritise psychological safety, flexibility, and empathy. The PwC Sri Lanka (2024) workforce trends report notes that employees are significantly more productive and engaged when offered hybrid working models and supportive leaders

01. Coaching the people leaders

For managers it’s important to know that there’s a duty of care to do something if they are concerned about their employees’ mental health. Starting the conversation can often be the most difficult part for a manager and there can be a lot of apprehension about actually approaching the employee. By building up their skills in communication, listening, empathy and how to assess what the person needs, you can help equip your team to feel ready if the time comes for it to be necessary.

02. Build a Culture of Openness

Ensuring that the support is there across teams is of utmost importance, such as having mental wellbeing allies and supports. Being able to connect with their peers is vital for people leaders as it can be extremely daunting for somebody to be supporting other conversations without having those deeper groups to connect back in with.

What managers do or don’t do has a real impact. A recent study found that managers can influence an employee’s mental health up to 70% ,more than a doctor and more than a therapist. This is why it is so important to make sure that managers are equipped for success.

03. Data-driven Programs

In starting up a wellbeing program, organisations should always aim to steer clear of “reactionary one-off programs”, but instead look towards those that are data-driven. Collecting this data includes looking at EAP trends, internal data such as employee pulse surveys, absenteeism trends, attrition and retention, and working with stakeholders to understand the pain points they have across the business. Based on this data, these programs can be developed with these pain points at the forefront of the strategy. 

04.  Create flexible working policies
> Encourage regular breaks and paid leave
> Provide mental health support and counseling access
> Train leaders to lead with empathy and emotional intelligence
> Celebrate achievements without promoting overwork

To truly improve well-being, companies must adopt a holistic approach. This includes confidential counselling services, manager training in emotional intelligence, and monthly “pulse surveys” to track employee sentiment. Leadership transparency also plays a major role,employees cope better with change when kept informed and included.

Furthermore, career development is a major well-being driver. Employees who feel stuck or undervalued are more likely to disengage or experience burnout. Providing learning opportunities, mentorship, and clear career paths increases motivation and reduces emotional stress.

Globally, companies like Google and Unilever invest heavily in well-being programs because they see clear benefits: stronger productivity, reduced turnover, and improved customer satisfaction (HBR, 2023). Sri Lankan companies can achieve similar results with consistent, people-centered strategies.

 

References

CBSL (2024) Labour Market Update. Central Bank of Sri Lanka.

Deloitte (2023) Banking Talent Trends in Sri Lanka. Deloitte Sri Lanka.

World Health Organization (WHO) Sri Lanka Mental Health Report,2023

The Morning (2023) ‘Banking Sector Attrition Report’, The Morning, Colombo.