Internships in Sri Lanka: Training Ground or Free Labour?
Internships in Sri Lanka: Training Ground or Free Labour?
A Rite of Passage, or a Loophole?
Nearly every Sri Lankan university student hears the same advice before graduating: get an internship, it looks good on your CV. What almost nobody explains clearly is whether that internship comes with a paycheck, or whether an employer is legally allowed to say no.
What Sri Lankan Law Actually Says
The answer is straightforward, and a little uncomfortable. Sri Lankan labour legislation contains no formal provision for internship contracts at all, which means paying an intern an allowance is entirely optional, not a legal requirement (Salary.lk, 2026). Even for registered trainees and apprentices, employers are only obligated to pay a minimum of 70 percent of the national minimum wage, and only for up to three years (HiveDesk, 2026). In practice, this leaves most companies almost complete discretion over whether an intern earns anything at all.
A Pattern Bigger Than Sri Lanka
This is not a uniquely local problem. Research published in Applied Economics Letters, analysing UN internship data across dozens of countries, found that individuals from developing countries are 75 percent more likely to take an unpaid internship than their counterparts from developed economies (Silva, 2021). Some organisations operating locally make this explicit: internships with certain foreign missions in Colombo, for example, are advertised upfront as offering no compensation whatsoever (U.S. Embassy in Sri Lanka, n.d.).
Some Employers Are Proving It Doesn't Have to Be This Way
The picture is not entirely bleak. Some local institutions have built genuinely paid internship models; one Sri Lankan university requires a mandatory 48 week paid internship for every student, treating the placement as real, compensated work rather than a favour (IIT, 2025). A widely shared local survey also identified more than 35 companies now paying above LKR 30,000 for internships, a sign that paid placements are slowly becoming more common, not less.
Who Can Actually Afford to Work for Free?
The uncomfortable question underneath all of this is one of access. An unpaid internship is only a realistic option for a student whose family can cover rent, transport, and food for several months without income. Students without that safety net are quietly filtered out of exactly the industries and companies that later do the most hiring, regardless of talent.
What This Means for Employers
For organisations serious about building a genuine talent pipeline rather than a source of free labour, the fix is simple in principle: treat interns as employees in training, not guests doing a favour. A modest stipend is not just a moral gesture, it widens the pool of talent a company can actually attract, and often produces more motivated, better-performing interns in return.
References
Salary.lk. (2026). Employment security in Sri Lanka: Employee agreements, probation, long and short term contracts. https://salary.lk/labour-law/employment-security
HiveDesk. (2026, March 8). Labor law compliance guide for Sri Lanka. https://www.hivedesk.com/compliance/sri-lanka
Silva, A. (2021). Unpaid internships and equality of opportunity: A pseudo-panel analysis of UN data. Applied Economics Letters, 28(15). https://doi.org/10.1080/13504851.2020.1808571
U.S. Embassy in Sri Lanka. (n.d.). Foreign National Student Internship Program. https://lk.usembassy.gov/jobs-draft/internship-program/
Informatics Institute of Technology (IIT). (2025). The IIT internship programme. https://www.iit.ac.lk/about/internships/
Further Reading
- LinkedIn (S. Ekanayake) — 35+ companies paying more than LKR 30,000 for internships in Sri Lanka
- Welcome to the Jungle — Internships: Golden opportunity or labor exploitation?
- Multiplier — Employment laws in Sri Lanka: 2026 guide for employers & HR
I found this blog very thought-provoking because it highlights an important issue that many students experience but is rarely discussed. I like how you supported your argument with both local and international evidence, making the discussion balanced and credible. To make it even stronger, you could include a brief example of a company that has benefited from offering paid internships. Overall, it's a clear and engaging blog that raises awareness of an important HR and employment issue while encouraging employers to think more fairly about internship practices.
ReplyDeleteInsightful article. I agree that internships play a vital role in developing practical skills and preparing graduates for the workplace. However, I would argue that the value of an internship depends more on its quality than its availability. Many internships provide routine administrative tasks with limited learning opportunities, which can reduce their effectiveness. Organizations should therefore design structured internship programs that include mentoring, meaningful responsibilities, regular feedback, and opportunities to apply academic knowledge. This approach benefits both interns and employers by developing skilled, work-ready talent while strengthening the future workforce.
ReplyDeleteThis was a very thought-provoking blog! I liked how you explored internships from both the student and employer perspectives, especially the discussion around unpaid internships and equal opportunities. The use of research and examples made your points stronger and showed the real impact of internship practices. One suggestion would be to include more discussion on what universities or employers can do to create a fairer internship experience. Overall, this was an engaging and relevant blog that highlights an important issue for young professionals.
ReplyDeleteI agree that internships should be viewed as a learning opportunity rather than a source of free labour. Your discussion highlights an important issue of fairness, especially because students from lower-income backgrounds may not be able to afford unpaid work. I particularly like the point that paid internships can help organizations attract a wider and more diverse talent pool. Employers can benefit from offering structured training, mentoring and reasonable financial support while developing future employees. Overall, making internships more accessible and fairly compensated could create benefits for both students and organizations.
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