How the Global Fuel Crisis and Rising Conflict Are Reshaping HRM

 


In 2022, fuel lines extended for miles throughout Sri Lanka, posing a challenge to HR managers that no textbook had prepared them for: how do you manage a staff that is unable to travel to work?

As a result of the Global Oil Disruption brought on by the 3rd World War, geopolitical conflicts between Russia and Ukraine resulted in drastically increasing fuel prices worldwide. As a result, the pearl of the Indian Ocean – Sri Lanka also severely experienced a fuel shortage while dealing with a sovereign debt crisis.  With that, most of the companies would make significant changes overnight, including renegotiating shift arrangements, establishing hybrid work practices, and updating transportation benefits (International Labour Organization, 2023).

However, the Sri Lankan logistics sector would be harshly impacted due to this ripple impact badly, and organizational culture, which is grounded on physical meeting sessions, coffee breaks, lunch breaks, and conferences, would suddenly fall apart. Moreover, as per Armstrong and Taylor (2020), organizational culture is the invisible glue of Human Resource Management, where, in such situations, if the employees are divided by circumstance rather than choice, cohesion declines, and employee engagement levels increase. Meanwhile, according to the Department of Labour, Sri Lanka (2023), it significantly highlighted that voluntary turnover in sectors affected by the fuel problem rose by 17% in 2022–2023, which indicates that companies would rethink their strategies.

However, most of the modernized organizations would revise their employee value proposition by initiating Digital onboarding, remote-first policies, gasoline subsidies as benefits, and asynchronous performance evaluations became standard, and paradoxically, the recession accelerated the digital transition of HRM by nearly a decade (Thite, 2022).

Conclusion

So, as a sum up, Fuel scarcity and global unrest together represent a structural shift of organizations where HR professionals need to shift from physically managing people to more invisible ways by more distributing the well-being of employees under the resource constraints. So it revealed that Sri Lanka's experience is more of a preview than an exception. Companies that incorporate resilience into their people strategy today will be the ones to weather future disasters.

 

References

Armstrong, M. and Taylor, S. (2020). Armstrong's handbook of human resource management practice. 15th edn. London: Kogan Page.

Department of Labour, Sri Lanka (2023) Annual labour market statistics report 2022–2023. Colombo: Ministry of Labour.

International Labour Organization (2023). World employment and social outlook: trends 2023. Geneva: ILO.

Thite, M. (2022) 'Digital human resource management: policy, theory and practice', Journal of Organizational Effectiveness: People and Performance, 9(1), pp. 1–19.

 


Comments

  1. Ashan WimalasurendraApril 20, 2026 at 1:23 AM

    This is a very relevant and timely topic, especially given the current global fuel situation affecting Sri Lanka. You clearly explain the impact well. Do you think organisations in Sri Lanka are adapting their HR and operational strategies quickly enough to manage rising fuel and transport costs, or are they still reacting too slowly?

    ReplyDelete
    Replies
    1. Sachini SenavirathnaApril 20, 2026 at 5:00 PM

      Thank you for your question. I believe many organizations in Sri Lanka are adapting, but not always fast enough. While some companies quickly introduced hybrid work, transport allowances, and flexible shifts, others are still reacting rather than planning ahead. The challenge is moving from short-term fixes to long-term HR strategies that can handle future disruptions more effectively.

      Delete
  2. Chandima KarunarathneApril 20, 2026 at 3:24 AM

    Very insightful post. I like how you connected the fuel crisis with HRM challenges in a very practical way, especially the impact on logistics and organizational culture in Sri Lanka.

    The point about culture being “disrupted rather than chosen” is very powerful, and it clearly shows how external shocks can reshape employee engagement and HR practices. I also agree that the crisis accelerated digital transformation in HRM much faster than expected.

    Overall, this highlights the importance of HR resilience and adaptability in times of uncertainty.

    ReplyDelete
    Replies
    1. Sachini SenavirathnaApril 20, 2026 at 5:00 PM

      Thank you for your valuable feedback. I’m glad you highlighted the idea of culture being “disrupted rather than chosen,” as it reflects the real impact of external shocks on organizations. I also agree that the fuel crisis accelerated digital transformation in HR much faster than expected. This situation clearly shows how important resilience and adaptability are for HR in uncertain times.

      Delete
  3. Nathasha JayamannaApril 21, 2026 at 8:05 AM

    The fuel crisis undeniably accelerated digital transformation, it also strained the psychological contract between employers and staff. If the organizational culture was built purely on physical presence, as you noted, the sudden transition to remote first policies could have risked eroding long term loyalty. This highlights that resilience isn't just about providing gasoline subsidies, but about maintaining that cultural cohesion when the physical office is no longer an option.

    ReplyDelete
  4. Nimesha EkanayakaApril 21, 2026 at 9:57 AM

    The article explains how the fuel crisis and global conflicts affected HR practices in Sri Lanka. It shows how companies changed their work methods and used digital solutions to adapt. The ideas are clear and supported with examples. However, some parts can be simpler and better connected. Overall, it is an important and useful discussion.

    ReplyDelete

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