COLOMBO, June 22 (Xinhua) -- The International Monetary Fund (IMF) on Friday said raising Sri Lanka's female labor force participation can boost the island nation's economic growth in the long run.

The IMF's executive board said in its latest assessment of its program with Sri Lanka that the island could raise the GDP by as much as 20 percent over the long-term by closing the gender gap in the workforce.

Key measures include labor law reforms to support flexible work arrangements such as part-time work, telework, working from home, and night work.

Effective gender budgeting to actively target gender equality, with a focus on vocational training, safe transportation, and child care support are also important.

"Enhancing female labor force participation (FLFP) is estimated to boost incomes significantly," the IMF said.

"Closing this gap is especially important as Sri Lanka faces an aging population with a labor force that is projected to shrink as early as 2026. Model based simulations indicate that closing the gender gap in 50 years could raise incomes by about 21 percent by the year the gap is closed," the IMF said.

The Sri Lankan government recently said it has identified policies to bridge the gender gap in the labor market and has formulated a medium-term strategic plan to remove the constraints.