Is Global HR Digitization Threatening Employee Privacy in Sri Lanka?
Introduction
In the rapid development and expansion of HRIS technology, there are many digital systems and tools, such as analytical systems, employee tracking systems, and employee details tracking systems, being used for HR management globally. HR digitalisation offers efficiency, and it also offers transformation and has led to more attention being paid to data privacy legislation (Vorecol, 2024).
Despite the fact that these
technologies get better, a critical question may arise: Are businesses in Sri
Lanka ready to safeguard their employees’ privacy?
Sri Lanka's economic sectors, including manufacturing, IT, banking, apparel, and agriculture, are using digital HR technologies widely these days. These technologies provide data accuracy, minimise human errors and speed up HR processes. But many companies do not consider the most important factor: that is, data privacy governance. Furthermore, most people don't know what data is collected, how it is stored, or how long it stays on file.
Reported global incidents of data privacy breaches
1. In 2019 Marriott International in USA- incurred a penalty due to a data breach that exposed the personal information of millions of guests.
2. In 2017 Equifax in USA -exposed the personal information of over 147 million people due to vulnerabilities in their HR technology systems (Vorecol, 2024).
3.
In 2013 Target, USA - compromised 40 million credit card numbers, which affected
millions of credit and debit card users due to poorly secured HR systems.
4.
In 2019 Capital One in USA & Canada - was affected by over 100 million customers
due to a misconfiguration of the web application firewall in their cloud
storage system.
5.
In 2018 British Airways in UK- compromised the personal data of over 500,000 customers.
Reported incidents of data privacy breaches in Sri Lanka
1. In 2025, Cargills Bank faced the terrible experience of a massive data dump leaked on the dark web. Customers’ National Identity Card (NIC) numbers, passport details, and video verification records were exposed, and they ignored the red flag about the bank’s weak cybersecurity system in audit reports from 2024.
2. 2024 the e-channelling platform run by Mobitel was found to be leaking patient data, a vulnerability made public through a Reddit post.
3. 2025 one of the private hospitals in Colombo came under fire for allegedly violating patient privacy. They have leaked a patient's details to an insurance company without permission.
Discussion
Other than the technical errors, disclosing confidential information directly influences the organisation’s reputation and long-term sustainability.
When employees feel their personal data is collected without consent or without
safety, it leads to mistrust and disengagement. This affects the confidence of
the organisation and weakens the reliability of HR responsibility in the organisation. Additionally, if an organisation fails to comply with the Personal Data Protection Act (PDPA), it may lead to legal actions such as paying penalties,
audits and mandatory corrective decisions. Reputation damage is a critical risk,
and it will drive a question about trustworthiness. A single breach can harm an organisation’s brand and damage the healthy relationship and credibility
between stakeholders and employees. Restoring trust can be extremely
difficult. Therefore, HR leaders must treat data governance as a core
responsibility, ensuring ethical handling of information while fostering a
culture of transparency and accountability.
Sri Lanka has become the first South Asian country to implement legislation to safeguard personal
data, which is the Personal Data Protection Act No. 9 of 2022 (PDPA). This data protection
law has been designed by incorporating global best practices followed by Asia, the USA and Europe (Data Protection Authority Sri Lanka, 2024). Additionally, the Sri Lanka
Standards Institution (SLSI) also has created standards for Digital HR and HR
Analytics to provide advice for organisations seeking digital transformation while implementing advanced AI and automation capabilities. Sri Lanka's future HR
digitalisation should be strongly focused on data security as well.
Conclusion
As long as it is not misused, HR digitization is not an enemy. Sri Lankan companies can benefit from digital HR while upholding the rights and dignity of their workforce if they have better governance and knowledge. Technology is not the challenge. It depends on how responsibly we use it.
Reference
Vorecol, (2024) Data Privacy and Security Concerns in HR Digital Transformation Available at : https://blogs.vorecol.com/blog-data-privacy-and-security-concerns-in-hr-digital-transformation-167944 [Accessed: November 16, 2025]
(Parliament of the Democratic Socialist Republic
of Sri Lanka, 2025) Available at: https://www.parliament.lk/uploads/acts/gbills/english/6242.pdf [Accessed: November 16, 2025]
(Data Protection Authority Sri Lanka, 2024) Protecting Your Data, Empowering an
Innovative Digital Economy Available at : https://www.dpa.gov.lk/
[Accessed: November 16, 2025]
Great points. HR digitalization brings efficiency, but companies in Sri Lanka need to prioritize data privacy. Employees should know what data is collected, how it’s stored, and how long it’s kept. Responsible governance is key.
ReplyDeleteThis post effectively explains how HR technology can improve processes while raising privacy concerns. I appreciate the examples of both global and Sri Lankan data breaches. Your focus on transparency, ethics, and compliance strengthens the overall discussion.
ReplyDeleteThis effectively highlights the importance of balancing employee privacy and efficiency.The blog could be further enhanced by including more examples of Sri Lankan organizations successfully implementing secure HR digital systems or best practices in data privacy.
ReplyDeleteThe important question, "Is Global HR Digitization Threatening Employee Privacy in Sri Lanka?" is thoughtfully analyzed in this blog post. By contrasting the effectiveness of HRIS with the ethical issues of data security and governance, it effectively frames the problem. Importantly, it places the conversation within the framework of the new Personal Data Protection, highlighting the importance of responsible technology use through reported local and international breaches.
ReplyDeleteI appreciate your thoughtful comments very much. I value your analysis on how to strike a compromise between ethical data governance and HRIS efficacy. The PDPA's implementation is a significant milestone, as you pointed out, but its actual impact will rely on how organisations coordinate their procedures, train their employees, and give responsible data handling first priority. As Sri Lanka moves forward with its digital HR transformation, more discussion on this subject is crucial, and I'm happy that this conversation adds to it.
DeleteThis is a well-written and timely analysis of the growing concerns around HR digitization and employee privacy in Sri Lanka. The blog effectively highlights how rapid digital adoption across industries has outpaced the development of strong data governance practices. The comparison between global breaches and local incidents adds strong credibility and urgency to the discussion. The emphasis on ethical responsibility, transparency, and the role of the PDPA provides valuable insight into what organizations must priorities moving forward. Overall, this is an insightful and relevant piece that raises important considerations for HR leaders in the digital era.
ReplyDeleteI appreciate you taking the time to leave this insightful comment. I'm happy that the viewpoints on both local and global breaches helped you see how urgent it is to improve data control. As you correctly pointed out, ethical responsibility and transparency must coexist with rapid digital adoption. I expect that more businesses will proactively emphasise employee data protection instead of viewing it as a compliance exercise now that the PDPA is in place. Your comments are incredibly motivating and reinforce the necessity for ongoing education on this topic.
DeleteThis article really highlights an important balance—HR digitization brings efficiency, but employee privacy must remain a top priority. In Sri Lanka, combining strong governance, ethical policies, and the PDPA framework can help organizations leverage technology responsibly while building trust and protecting their workforce.
ReplyDeleteAs someone working in the hotel industry, I see firsthand how digital HR systems are transforming the way we manage staff. From scheduling to payroll, the efficiency is undeniable. But in hospitality, our people are our greatest asset, and their trust is just as important as guest trust. If employees feel their personal data isn’t safe, it affects morale and loyalty. Hotels in Sri Lanka, especially, must balance the convenience of digitization with strong privacy safeguards. Just as we protect guest information, we must protect employee information with the same seriousness. HR technology should empower our teams, not make them feel exposed
ReplyDeleteI appreciate you giving this insightful viewpoint from the hotel sector. You've brought up an essential point: in a people-driven industry like hospitality, employee trust is equally as vital as visitor trust. Digital HR solutions undoubtedly increase productivity, but they also need to be backed by acceptable data practices and transparent privacy protections. Your observation supports the idea that HR technology should improve, not diminish, the work experience. Thank you very much for adding to the conversation.
DeleteThis is an important and well-presented topic, especially with rapid HR digitalisation in organisations. You clearly explained the tension between efficiency and privacy. Adding supporting citations and mentioning legal frameworks or data-protection guidelines would make the analysis even stronger.
ReplyDelete