Current state of affairs
Sri Lanka, like many countries, is experiencing a digital revolution that is fundamentally changing the nature of employment.
With 51% of Sri Lankans having internet access in 2020, according to data from the Commonwealth and Sri Lanka Export Development Board (EDB), the digital divide is gradually narrowing. However, challenges persist, particularly in ensuring equitable access to technology and digital literacy for all segments of society.
Furthermore, the reliance on technology is altering the composition of the labour force. As of 2023, the number of Sri Lankan migrant workers deployed overseas, primarily semi and low-skilled, stood at 59%, according to Economynext. While migration has been a traditional source of employment for many Sri Lankans, the rise of automation and digitalisation threatens to disrupt traditional job markets, leading to concerns about job displacement and income inequality.
Challenges faced by workers
One of the most pressing challenges is the prevalence of informal employment, which accounts for an estimated 67% of Sri Lanka’s workforce, as reported by the IMF in 2019. Workers in the informal sector often lack job security, social protections, and access to formal channels for dispute resolution. Moreover, the informal nature of their employment makes it difficult to track and regulate, exacerbating issues of exploitation and vulnerability.
Additionally, the projected unemployment rate of 5.2% in 2024, as forecasted by Economynext in 2021, underscores the urgent need for job creation and skill development initiatives. With an estimated total labour force of 8 million individuals aged 15 and above, according to the Labour Force Survey (LFS) conducted in 2024, the challenge lies in matching the skills of the workforce with the demands of a rapidly evolving job market.
The role of technology in reshaping work
Despite these challenges, technology also presents opportunities for innovation and economic growth. The Information and Communication Technology (ICT) sector, for instance, has emerged as a key driver of employment and export revenue. With an estimated 590,649 Sri Lankans employed in the ICT sector, as reported by The ICT Skills Sector Council in Sri Lanka in 2020, there is immense potential for leveraging technology to create high-value jobs and foster entrepreneurship.
Furthermore, the adoption of digital platforms and remote work arrangements has enabled greater flexibility and connectivity. As businesses embrace digital transformation, there is a growing demand for skilled workers in fields such as software development, data analytics, and digital marketing.
