Sri Lanka's Economic Challenges: Low Productivity Trap and Workforce Decline Highlighted by IPS

Sri Lanka's Economic Challenges: Low Productivity Trap and Workforce Decline Highlighted by IPS

Analyzed 2 sources • 1d ago

• Sri Lanka faces a low productivity trap due to negative economic growth.
• Labour force participation rate fell from 51.8 percent to 48.6 percent from 2018 to 2023.
• All sectors saw negative productivity, with ICT sector having the highest output.
• Only 20 percent of workers held high-skilled jobs in 2023.
• Public sector employment increased by 60 percent since 2005, affecting growth.
• Improving TVET is essential for enhancing youth employment opportunities.
• Education and administrative improvements are crucial for economic recovery.