Second, the level of employment
offered by these firms was useful to maintain good relations with the government. The government had made
a 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 capital
with technology) was a cause of tension between firms and the government, as it increased the social and political
pressures associated with unemployment. The firms in the sample appeared in their annual reports to mediate the
tension by drawing attention to the current level of employment rather than reporting on increases or decreases in
employment, with the aim of avoiding the introduction of further legislation which could reduce their accumulation of
capital.