Thursday, April 10, 2025

Data Security and Compliance with the use of Technology in Sri Lanka

 


As Human Resource Management (HRM) functions become increasingly digitized, ensuring data protection and regulatory adherence has emerged as a major concern for businesses in Sri Lanka. The use of Information Technology (IT) in HR processes has significantly improved the handling and organization of employee information. However, this digital transformation has also introduced new challenges related to data security, privacy, and legal compliance. To address these issues, Sri Lanka implemented the Personal Data Protection Act No. 9 of 2022 (PDPA), marking a crucial step toward harmonizing with international standards for data privacy.


HR departments manage a broad range of confidential information, including identity documents, financial details, medical histories, and performance records. With the adoption of digital tools like Human Resource Information Systems (HRIS), the risk of unauthorized access or data misuse increases if sufficient safeguards are not in place. The PDPA requires organizations to apply strong technical and administrative measures to prevent the unauthorized handling, loss, or alteration of personal data (DLA Piper, 2023).



IT plays a critical and multi-layered role in securing HR data. Digital systems help ensure data is stored securely, accessed only by authorized personnel, and transmitted in encrypted formats. In Sri Lanka, modern HRIS solutions offer key features like access control based on user roles, system activity logs, and automatic data backups. These functionalities help organizations align with the PDPA’s requirements, including obtaining informed consent, ensuring data accuracy, and enabling timely data removal when necessary (MiHCM, 2023).

In addition, cloud-based HR platforms offer businesses scalable, cost-efficient ways to meet compliance demands. However, they also raise concerns about data jurisdiction and cross-border data handling. The PDPA includes provisions that apply to international vendors processing data of Sri Lankan individuals, making it essential for businesses to confirm that their cloud service providers follow strong data protection and legal standards (DLA Piper, 2023).

HR professionals now play a vital role in maintaining compliance and managing data securely. They are tasked with establishing internal policies that reflect PDPA principles, raising awareness about data rights, and overseeing secure data-handling practices. As noted by Wijesinghe and Wickremeratne (2020), collaboration between HR, legal, and IT departments is key to building a culture of compliance. Essential practices include running employee training, implementing privacy policies, and conducting regular compliance checks.

Nonetheless, small and medium enterprises (SMEs) in Sri Lanka face difficulties such as limited financial resources, insufficient IT infrastructure, and a lack of legal expertise. Addressing these challenges requires affordable technological solutions and proactive government support through education and policy guidance.


Conclusion

IT significantly enhances data protection and supports legal compliance in HRM within the Sri Lankan context. The PDPA emphasises the importance of transparent, secure, and compliant data practices. By leveraging technology and engaging HR professionals in strategic data governance, organisations can meet legal standards and build trust with their workforce.

References

CyberWire. (2021). Data privacy and protection [video]. YouTube. Available at: https://youtu.be/N8xEgSe5RwE?si=85ak2gE2kHE5RPXD [Accessed 10 Apr. 2025].

DLA Piper. (2023). Data protection laws in Sri Lanka. [online] Available at: https://www.dlapiperdataprotection.com/index.html?c=LK&t=law [Accessed 10 Apr. 2025].

eLabNext. (n.d.). Data security [image]. Available at: https://cdn.prod.website-files.com/6616a97b987b13e0a3734972/67605d1c03671618c10e14e9_data-security-eLabNext.jpg [Accessed 10 Apr. 2025].

MiHCM. (2023). HR compliance checklist: A comprehensive guide. [online] Available at: https://mihcm.com/resources/blog/hr-compliance-checklist-a-comprehensive-guide/ [Accessed 10 Apr. 2025].

Unknown author. (n.d.). Data protection visual concept [image]. Available at: https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcRgEM1Ilq8TfIIWCjmrD4py91rAbmb5Ro3ODMRRtG7UDJ83efTgi_SYdsP7N8xHePnyf-Q [Accessed 10 Apr. 2025].

Wijesinghe, P.R.D. and Wickremeratne, H.G.M., (2020). The role of human resources professionals on the General Data Protection Regulation. International Journal of Scientific and Research Publications, 10(8), pp.707–711. https://doi.org/10.29322/IJSRP.10.08.2020.p10

15 comments:

  1. This blog highlights a vital aspect of modern HRM—data security and compliance. It's great to see how Sri Lanka is aligning with global standards through the PDPA, and how technology is being used to safeguard sensitive employee information effectively.but,
    How can small and medium-sized enterprises (SMEs) in Sri Lanka balance limited resources with the need to comply with the PDPA and implement strong data security measures?

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    Replies
    1. SMEs in Sri Lanka can manage PDPA compliance despite limited resources by taking a phased approach—starting with affordable, high-impact steps like appointing a part-time data protection officer, training staff, and using secure cloud-based HR tools. Leveraging scalable technologies and support from industry or government initiatives can also ease the process.

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  2. Fantastic blog Given the passage of Sri Lanka's Personal Data Protection Act (PDPA) No. 9 of 2022, your explanation of the significance of protecting employee data with strong HRIS systems is both relevant and current. In accordance with global best practices, this law requires enterprises to put in place the proper organizational and technical safeguards for data protection.It's critical that you emphasize the use of PDPA-compliant HRIS solutions. By automating procedures and guaranteeing proper data management, platforms such as CoreHR are made to assist enterprises in maintaining compliance. Data security and compliance can also be improved by putting role-based access controls into place and carrying out frequent data audits.​
    How can Sri Lankan small and medium-sized businesses efficiently deploy PDPA-compliant HRIS solutions while taking any resource limitations into account?

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    Replies
    1. Thank you for your thoughtful feedback! I’m pleased to hear the blog resonated with you, especially given the recent implementation of the PDPA. You’ve touched on a crucial issue—how SMEs can stay compliant despite limited resources. A practical solution is to invest in flexible, cloud-based HRIS platforms that come with built-in PDPA compliance features, minimizing the need for significant upfront infrastructure costs. Starting with essential functions like employee data handling and access control allows SMEs to prioritize key protections without exceeding their budget. Partnering with local HR tech providers who understand the regulatory context and offer customized, ongoing support can also be incredibly valuable. I’ll be delving deeper into this topic in an upcoming article.

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  3. This blog post highlights the growing importance of data security in HRM, especially with Sri Lanka’s adoption of the PDPA. It’s clear that while technology brings efficiency, it also introduces new responsibilities and risks particularly for SMEs.
    But, how can smaller businesses in Sri Lanka practically implement PDPA-compliant systems without incurring high costs?

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    Replies
    1. Thank you for your insightful comment! You’ve touched on a key concern—balancing compliance with affordability for SMEs. The good news is that becoming PDPA-compliant doesn’t always require heavy investment. Simple steps like conducting basic data audits, using affordable secure HR platforms, training staff on data privacy, and implementing clear privacy policies can go a long way. Plus, outsourcing certain tasks occasionally can be much more cost-effective than building everything in-house.

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  4. This blog post explores the link between technology and data protection in Sri Lankan human resource management. It describes how PDPA and HRIS can help to protect data. If you were able to include practical items from a Sri Lankan company as examples, you were able to add value to this blog article.

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    Replies
    1. Thank you for your thoughtful feedback! I appreciate your suggestion about including practical examples from Sri Lankan companies—it’s a great idea and would definitely add more depth to the discussion. I’ll look into integrating some real-world HRIS and PDPA implementation cases in future updates to enrich the content further. Your input helps me improve, and I’m glad you found the topic relevant!

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  5. Your blog post provides a comprehensive overview of the critical importance of data security and compliance in HR operations. The emphasis on transparency and ethical considerations is significantly relevant, given the increasing reliance on digital tools in HR.

    In your opinion considering the unique challenges faced SMEs in Sri Lanka, such as limited resources and technological infrastructure, what practical steps can these organizations take to implement robust data security measures without incurring significant costs?

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    Replies
    1. Thank you for your thoughtful comment. Given the challenges SMEs in Sri Lanka face, they can enhance HR data security affordably by focusing on employee training, using free or low-cost security tools, adopting secure cloud-based HR platforms, applying role-based access controls, and ensuring regular system updates and backups. These practical steps help strengthen data protection without requiring significant investment.

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  6. Great post! The use of HRIS and cloud-based systems is a game-changer for Sri Lankan businesses, but the need for data security is more pressing than ever. I particularly appreciate how you covered the international aspect of data handling. With the PDPA in place, it’s good to see businesses now focusing on the right tools and practices to protect personal data and meet legal standards.

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    Replies
    1. Thank you so much for your thoughtful comment! I’m glad you highlighted the importance of data security—it’s definitely one of the most critical aspects as Sri Lankan businesses embrace HRIS and cloud-based solutions. The implementation of the PDPA is a big step forward, and it’s encouraging to see organizations aligning their practices with both local and international data protection standards. Your insights add great value to the discussion!

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  7. This blog gives a strong overview of the growing importance of data security in HRM. The explanation of PDPA is clear and timely. However, it would be helpful to see more local examples of how Sri Lankan companies especially SME are applying these practices. Also, practical tips for low-cost compliance would benefit smaller HR teams that lack legal or IT support

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    Replies
    1. Thank you for your thoughtful comment and valuable suggestions! I’m glad you found the overview and explanation of the PDPA useful. You’re absolutely right—local examples and practical, cost-effective strategies are essential, especially for SMEs navigating data security with limited resources. I’ll be updating the post soon to include case studies from Sri Lankan companies and share actionable tips that smaller HR teams can implement without extensive legal or IT support. Stay tuned, and thanks again for engaging with the content!

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  8. Technology is essential to maintaining compliance and protecting employee data as data protection becomes increasingly important, particularly with the the Personal Data Protection Act in effect. By putting transparency and security first, utilising IT in Sri Lanka not only helps HR comply with regulatory obligations but also builds employee trust. To stay ahead of trends and create a culture of trust and responsibility, HR professionals must be involved in strategic data governance. I appreciate you bringing attention to this significant HR-technology intersection!

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