Lanka facing looming crisis due to shrinking workforce

 

Sri Lanka is facing a looming crisis as its labour force shows signs of a rapid decline, according to Professor Wasantha Athukorala of the Department of Economics and Statistics at the University of Peradeniya. Citing recent data from the 2024 Population and Housing Census, Professor Athukorala warns that the shrinking workforce poses a serious threat to the country’s economic stability and future development.

The country’s total population currently stands at 21.76 million. However, despite a modest increase of 1.4 million people since the last census in 2012, the population growth rate has slowed to just 0.5%—a noticeable drop from 0.7% recorded a decade ago.

This downward trend signals an overall decline in population growth, which could have far-reaching effects.

“This is not just a demographic issue; it’s an economic one,” Professor Athukorala said. “A shrinking labour force means fewer people contributing to the economy, which in turn increases the burden on those who are working. The pressure on healthcare systems will also rise with an ageing population, and we can expect a range of social and infrastructural challenges to intensify.”

One such challenge is the growing strain on urban centers. The census revealed significant disparities in population density across the country.

Nearly 6 million people reside in the Western Province, while the Central and Southern Provinces have 2.7 million and 2.6 million respectively. This uneven distribution is contributing to increased urban congestion and potential neglect of rural areas.

Professor Athukorala said that there was another troubling social reality: 2,281 individuals in Sri Lanka are currently homeless, lacking basic shelter—another indicator of rising socio-economic stress.

Although national censuses are typically conducted every ten years, the 2024 edition experienced delays. Still, the findings paint a clear picture: Sri Lanka’s population is aging, growing more slowly, and concentrating unevenly—all while its labor force dwindles.

“As the workforce continues to decline, we must be prepared for rising healthcare costs, increased urban pressures, and deepening social issues,” warned Professor Athukorala. “Policy interventions are urgently needed to mitigate the long-term impacts.”

By Sujeewa Thathsara

Source:
The Island

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