Key survey shows an increase in employment in 2024 compared to 2023

Unemployment problem more acute for educated females than educated males

By Sanath Nanayakkare

Most of the males and females active in the labour force in Sri Lanka were in their 40s, according to the Labour Force Survey (LFS) valid for the second quarter 2024, conducted by the Census and Statistics Department of the Central Bank of Sri Lanka.

The unemployment problem in Sri Lanka is more acute for educated females than educated males, the survey bulleting stated referring to its consistent observation over the past years.

The survey was based on the data collected in April, May and June in 2024 covering the whole country.

It was also based on the quarterly sample of 6,440 housing units. It covered persons living in housing units only and it excluded the institutional population.

Considering the distribution of Labour Force Participation Rate (LFPR) by age group and by gender depicts high male participation compared to female in all age groups. The highest participation rate for male is reported from age group 45 – 49 years (96.3%), while that for female is reported from 40 – 44 age group (46.5%).

During second quarter of 2024, the total number of employed persons in Sri Lanka was estimated as 8 million. Of which, about 48.5 percent engaged in the service sector, 26.5 percent in industry sector and 25.0 percent in agriculture sector. In the second quarter of 2024, there were increases in employed persons in service and industry sectors compared to the second quarter of 2023.

The majority of the workforce are private sector employees followed by own account workers. Non agriculture sector covered 75.0 percent of employed population in Sri Lanka, employees and own account workers were highly constraining in that sector. The highest employment share was in service sector and this was true for both male and female, while the lowest shares were for agriculture sector. Among employed females 22.1 percent was in agriculture sector while this share was 26.5 percent for males.

The overall unemployment rate reported for female was 7.0 percent and it was 3.6 percent for male. Youth unemployment rate (age 15 – 24 years) corresponding to the second quarter 2024 was 25.4 percent and that was the highest reported unemployment rate among all age groups. Further the unemployment rates for males and females were 20.1 and 35.6 percent respectively for age group 15 – 24.

The survey results further revealed that the unemployment among females was higher than that of males, in all age groups. Youth and female unemployment contribute more to the overall unemployment of the country.

The number of unemployed persons was estimated as 397,855 during the second quarter 2024. The unemployment rate for the second quarter 2024 was 4.7 percent.

The highest unemployment rate was reported from the G.C.E.(A/L) and above group which is 7.8 percent. Corresponding percentages were 5.8 percent and 10.0 percent for males and females respectively. Female unemployment rates were higher than those of males in all levels of education. Survey results further showed that the problem of unemployment was more acute in the case of educated females than educated males, which was observed consistently over the results of previous survey rounds as well.

Luxury hospitality sector

By Ifham Nizam

Luxury hospitality in Sri Lanka has reached new heights with Aviyana, a leisure property that blends bespoke experiences, sustainability and cultural enrichment.

 Speaking to The Island Financial Review about the challenges and opportunities in the luxury travel industry, Shezad Hameed, Director of Operations at Aviyana, shared insights into how the property is transforming Sri Lankan tourism.

 Hameed acknowledged the operational hurdles in maintaining Aviyana’s high standards, including a skilled labor shortage and rising costs. “High turnover rates and wage inflation are persistent challenges in the luxury hospitality sector,” he explained. “We’ve tackled these by investing in talent recruitment, retention strategies, and cost management, such as adopting energy-efficient technologies and renegotiating supplier contracts.”

 Despite these challenges, Aviyana has carved a niche in experiential luxury, appealing to travelers seeking authenticity, personalization, and purpose-driven experiences. “Luxury is no longer about superficial extravagance,” Hameed said. “Today’s travelers prioritize immersive, meaningful connections. At Aviyana, we deliver this through curated adventures that showcase Sri Lanka’s natural beauty and cultural heritage.”

 Aviyana offers a wide array of tailored experiences, from private treks in the Knuckles Mountain Range to serene lakeside retreats. “Personalization is at the heart of what we do,” Hameed emphasized.

“From the moment a guest inquires, our team crafts bespoke itineraries tailored to their preferences, whether it’s dietary needs, wellness treatments, or adventurous excursions. Every stay is meticulously curated to ensure it becomes a cherished memory.”

 The property’s eco-conscious practices also set it apart. “Sustainability is integral to our operations,” Hameed noted. “Our ‘BREATHE’ initiative has planted over 3,000 trees, supporting biodiversity and reforestation. We operate a zero-waste policy and source fresh produce from our on-site organic farm. These efforts reflect the global shift towards responsible tourism.”

 Aviyana’s commitment to the community is equally significant. “We employ and train locals from nearby villages, offering them career opportunities with potential for advancement.”

 Understanding the growing demand for experiential travel, Aviyana has devoted half of its 24-acre property to curated activities. “Guests can immerse themselves in cultural workshops, farm-to-table dining, and guided wildlife encounters,” Hameed explained. “We’re also a haven for nature photographers and documentary crews, offering access to untouched ecosystems and stunning landscapes and that’s how we have redefined Sri Lankan hospitality, offering unique adventures on the ground, air, and water.”

 Looking to the future, Aviyana plans to launch an innovative booking system designed to enhance guest experiences further. “Our goal is to craft transformative journeys that resonate with today’s discerning travelers,” Hameed stated.

 He also said Aviyana has become a sought-after haven for nature photographers and documentary crews, offering access to untouched ecosystems, rare wildlife, and stunning landscapes that have yet to be explored, making it ideal for those seeking creative inspiration.

In alignment with global sustainability trends, we integrate eco-conscious practices into every aspect of the guest experience—whether through solar-powered utilities, reforestation initiatives with over 3,000 trees with our ‘BREATHE’ initiative, or our zero-waste policies.

 “We are excited to introduce an innovative booking system tailored to our market segment, which we look forward to unveiling alongside the official launch of bookings,” Hameed said.

The Colombo Stock Exchange (CSE) and the Securities and Exchange Commission of Sri Lanka (SEC) in association with the Stock Broker industry, will host the “Invest Sri Lanka” Capital Market Investor Forum on 27th and 28th March 2025, at the Shangri-La Hotel in Colombo.

The event is aimed at promoting investment in the Sri Lankan capital market among institutional investors and fund managers based both locally and internationally.

This flagship forum will bring together key stakeholders from Sri Lanka’s capital market ecosystem to showcase the country’s investment potential. It will highlight Sri Lanka as an attractive investment destination, especially in light of recent economic reforms and the latest upgrade from Fitch Ratings, which has raised Sri Lanka’s long-term foreign currency issuer default rating from Restricted Default (RD) to CCC+.

This upgrade reflects the country’s significant progress in stabilizing its economy and signals that the risk of imminent default has eased, fostering growing confidence in Sri Lanka’s financial recovery. It is a crucial milestone in the country’s efforts to rebuild credibility and regain investor trust, playing an essential role in attracting both domestic and international investors, particularly through debt restructuring efforts, fiscal reforms, and securing international support, such as the ongoing IMF program.

This improvement is expected to provide an important boost to investor sentiment, as it demonstrates Sri Lanka’s commitment to addressing its economic challenges and taking necessary steps to ensure long-term fiscal stability.

The ‘Invest Sri Lanka’ Capital Market Investor Forum 2025 will feature leaders in Government, financial and capital market sectors, including regulators, market intermediaries and listed companies to make a collective case for Sri Lanka as an attractive investment destination.

The forum will provide networking opportunities, fostering meaningful connections and promoting synergies that highlight the investment potential within Sri Lanka’s dynamic capital market. Pre-scheduled one-on-one discussions between international fund managers and Sri Lankan companies will facilitate further investment partnerships.

The Capital Market Investor Forum 2025 comes at a time of continued positive growth for Sri Lanka’s stock market, offering an attractive environment for investors through the country’s economic reforms and financial market liberalization. This forum will build on previous initiatives aimed at driving foreign investment and positioning Sri Lanka as a leading frontier market in Asia.