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Second, the level of employmentoffered by these firms was useful to maintain good relations with the government. The government had madea substantial investment in educating its workforce, and was looking for a rate of return on that investment. Further,a high unemployment level was a cause of concern for the government (Central Bank of Sri Lanka Annual Report,2000, p. 127; McSheehy, 2001, p. 57). However, the decreasing level of employment (due to replacing human capitalwith technology) was a cause of tension between firms and the government, as it increased the social and politicalpressures associated with unemployment. The firms in the sample appeared in their annual reports to mediate thetension by drawing attention to the current level of employment rather than reporting on increases or decreases inemployment, with the aim of avoiding the introduction of further legislation which could reduce their accumulation ofcapital.
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