Page 70 - UDYAMA FINAL final for web

Clients prefer gig work due to two main reasons; Gig economy’s opportuni-

ties and challenges for Sri
First, clients can seamlessly access Lanka
a global talent pool more The gig economy opens several
conveniently than ever opportunities to Sri Lanka. First,

the gig economy is a source of
Second, the gig model is foreign exchange earner. Since
1978, Sri Lanka’s current account
cost-effective than the conventional balance is a deficit and it has
adversely affected the country’s
model in terms of paying health and economic stability (CBSL, 2019).
retirement benefits, and Specifically, with a huge deficit in
the trade balance, the country
compensation needs to earn foreign currency
through transfers to reduce the
current account balance. The gig
economy provides Sri Lanka with
an opportunity to increase foreign
earnings since gig workers are
The two sides of the same contracts are not abided by the paid in foreign currencies. The
earnings from gig working can be
coin: Attractions and labour regulations. Consequently, an effective source to reduce the

Criticisms clients enjoy greater operational chronic balance of payment issue
flexibility in hiring, paying, and
of Sri Lanka. Second, the gig
terminating services, which ass- economy provides a solution for
The gig model provides enticing
benefits to gig workers. First, the ure adaptive power and resiliency the unemployment problem in Sri
gig workers enjoy the greater fle- in facing business disruptions and Lanka. The gig economy opens a
xibility that creates the avenue for economic meltdowns. global clientele far beyond the
better work-life balance. Second, employment opportunities that
it allows higher autonomy to the Though the gig economy is seen prevail in the local economy
provider in choosing and execut- as a beneficiary model by many, it alone. Thus, Sri Lanka, a country
ing the projects. The flexibility is not free from criticisms. The that faces the issue of unemploy-
and autonomy received from gig main criticism against the gig ment is a burning issue, can red-
work create a sense of meaning- model is the deprivation of the uce the country’s workforce une-
fulness to the gig workers. Third, gig workers from guaranteed mployment by developing a glob-
the gig model opens low-cost jobs, retirement plans, medical ally competitive digital profes-
access to a global client base and compensations, insurance by cli- sional workforce. Third, the gig
a wider local clientele compared ents, and many more benefits economy provides an opportunity
to the conventional economic enjoyed by a conventional em- for the development of a new
model. Fourth, gig workers get ployee since the protections from business segment in Travel and
the opportunity to work for multi- labour legislation are absent for Tourism in Sri Lanka. The gig
ple clients simultaneously. the gig worker. Also, surveys sho- economy has created a specific
w that the average earning for segment of gig workers identified
some gig providers (unskilled gig as digital nomads who travel to
Clients prefer gig work due to
two main reasons. First, clients workers) is well below that of a different destinations and provide
can seamlessly access a global regular employee who performs a virtual freelancing from those
talent pool more conveniently th- similar task, thus exploiting hum- destinations to clients worldwide.
an ever. Second, the gig model is an capital. Similarly, platform This segment offers Sri Lanka an
cost-effective than the conven- organizations assign the work to attractive opportunity for strategi-
tional model in terms of paying different providers and thereby cally creating a niche market and
health and retirement benefits, exercise undue control over the position Sri Lanka as a destina-
gig workers' earning capacity
and compensation since the gig tion with co-working spaces for
reducing their choice. digital nomads.

68 January 2021