ECONOMIC CRISI AND HRM: MANAGING PEOPLE IN SRI LANKAN ORGANIZATIONS
The Sri Lankan economic crisis from 2022 to present has created severe challenges for organizations, not just financially but in managing their people. Rising inflation, business closures, and workforce migration have forced companies to rethink how they attract, manage, and retain employees. This situation highlights how HR principles and organizational practices must adapt to external pressures in a global and uncertain environment. HR strategies in Sri Lankan organizations have moved from growth-oriented strategies to survival-oriented strategies. Organizations in Sri Lanka have resorted to various strategies such as reduction in workforce, salary changes, and changing jobs to cut down on expenses and ensure organizational survival. These strategies match very well with Contingency Theory, which states that HR strategies need to be adapted in accordance with external organizational conditions and not in a general way (Donaldson, 2001). For example, organizations in the apparel ...