The Importance of Maintaining a Policy on Discrimination and Harassment in the Sri Lankan Banking Sector

 Introduction

The Sri Lankan banking sector is one of the most important pillars of the economy, with thousands of employees, diverse customers, and a strong regulatory framework. Banks play a crucial role in shaping professional standards across the nation. In today's professional institutions, all banks believe in high standards of ethical and professional behavior and expect all to respect them in order to create a friendly workplace to conduct their business. Also, policy on discrimination and harassment is not just a corporate requirement; it is a necessity for ethical banking, public trust, and long-term stability.

What is Discrimination

The banks recognize and distinguish all staff members solely based on knowledge, skills, contribution, and attitude. Therefore, discrimination at work means bias and unfair treatment based on gender, race, ethnicity, religion, cultural or social differences.  

What is Harassment

Harassment could be largely defined as an action, favor, behavior, or gesture of a physical, verbal, or non-verbal nature which is unwelcome and unwarranted. Such conduct of one or more staff members will constitute harassment at work if,

♦ It unreasonably interferes with an employee’s work performance.

♦ It contributes to an antagonistic and offensive atmosphere and relationships at work. Harassment at work could be in the form of abuse, intimidation, assault, alteration, insult, or annoyance caused to any stakeholder of the banks

Harassment refers to any unsolicited behavior, action, or communication that fosters a hostile, intimidating, or offensive atmosphere for an individual or a group. It can occur in various forms, including verbal, physical, psychological, or digital, and frequently targets particular characteristics such as race, gender, sexual orientation, religion, disability, or age (The Oxford Review, 2016).

The critical issue of workplace harassment, which affects employees globally and
impacts their safety, mental health, and overall job satisfaction. It focuses on Sri Lankan companies, exploring the prevalence and types of harassment, current HR practices, and proposing strategies for improvement (Gunarathna D T., 2025)

Discussion

Workplace harassment is recognized as a significant concern within the banking industry, which faces considerable violations of human and labor rights. Given the current global climate, employees experiencing harassment are more likely to leave their jobs and exhibit decreased productivity as a result of excessive stress and precarious mental health (Martins J M., Shahzad M F., Javed I.,2023).

Organizational consequences

-          High costs involved in investigations

-          Lower productivity at work and absenteeism due to low morale, low motivation, physical and psychological tribulations.

-          High employment turnover and increased expenses owing to resignations, recruitments, and placements.

-          Increase in grievances and disputes within the bank, resulting in workplace tension and poor industrial relations.

-          Ensuring a negative public image of the banks.

A clear anti-discrimination and anti-harassment policy helps banks to,

-          Comply with local labor regulations.

-          Avoid legal disputes and penalties.

-          Satisfy CBSL’s expectations for good governance and ethical conduct.

Prevention

To prevent discrimination and harassment, banks should create clear HR policies that define unacceptable behavior and reporting procedures. They should hold regular training sessions to raise awareness and promote confidential, non-retaliatory reporting. It is also important to promote a respectful culture by leading by example, monitoring workplace dynamics, and consistently enforcing policies. By taking these steps, banks can foster inclusivity, improve employee morale, and ensure that trust and integrity stay central to their operations.

Conclusion

A clear policy on discrimination and harassment is essential for Sri Lankan banks. It ensures ethical practices, protects employees, and maintains productivity. This policy helps prevent legal issues, improves employee morale, and safeguards the bank’s reputation. By promoting a respectful and inclusive workplace, banks build public trust and ensure long-term stability.

References

Gunarathna, D.T., 2025. Addressing workplace harassment and ensuring employee safety in Sri. International Journal of Science, Architecture, Technology, and Environment, pp.48–78. Available at: https://ijsate.com/wp-content/uploads/2025/04/V2I4P52_IJSATE042547.pdf [Accessed 20 November 2025].

Martins, J.M., Shahzad, M.F. and Javed, I., 2023. Assessing the impact of workplace harassment on turnover intention: Evidence from the banking industry. Emerging Science Journal (ESJ), pp.1699–1722. Available at: https://ijournalse.org/index.php/ESJ/article/view/1876/0 [Accessed 20 November 2025].

The Oxford Review, 2016. Harassment definition and explanation. The Oxford Review, February. Available at: https://oxford-review.com/the-oxford-review-dei-diversity-equity-and-inclusion-dictionary/harassment-definition-and-explanation/ [Accessed 20 November 2025].