Business

How SL’s ‘demographic slowdown’ could snag future economic growth

Published

11 months ago

2025/11/8

UNFPA Officer-in- Charge Phuntsho Wangyel

As Sri Lanka navigates its IMF-led reforms and seeks to rebuild fiscal stability, the United Nations Population Fund (UNFPA) has warned that the country’s demographic slowdown — marked by falling birth rates and an ageing population — could emerge as a major long-term constraint on economic growth and labour productivity.

Releasing the preliminary findings of the 2024 Census of Population and Housing in Colombo, UNFPA Officer-in-Charge Phuntsho Wangyel said Sri Lanka’s population now stands at 21.76 million, reflecting an increase of just 1.4 million since 2012. The country’s annual growth rate has fallen to 0.5 percent, underscoring a demographic transition with profound fiscal and economic implications.

“The message is clear — fewer babies are being born. This slowdown, combined with low fertility and rapid ageing, signals a significant shift in Sri Lanka’s age structure, Wangyel said.

He warned that the demographic changes could affect the labour market, productivity and public finances, urging policymakers to plan ahead to ensure long-term economic resilience.

“When fertility rates decline, the focus of policy must shift from managing population numbers to investing in people, advancing gender equality and strengthening systems that can support an ageing population, Wangyel stressed.

Wangyel said the implications of the census data go beyond population statistics, directly influencing Sri Lanka’s growth trajectory. A shrinking working-age population, he explained, could lead to slower output growth, rising fiscal pressure on pensions and healthcare and increased dependency on a smaller tax base.

“The economic implications are clear. A smaller workforce means slower growth unless productivity rises. This is why investing in education, technology and gender equality is no longer optional — it’s essential, he said.

He added that the transition demands policy reorientation — from expanding the labour supply to improving workforce productivity, innovation and social safety nets.

“Population data is not just a set of statistics — it’s an economic tool. It helps governments, investors and the private sector anticipate changes in labour supply, consumer demand and public expenditure, Wangyel said.

Wangyel praised the Department of Census and Statistics (DCS) for conducting Sri Lanka’s first-ever digital census, describing it as a “crucial stride” toward modernising data collection and strengthening national planning.

“This digital census is a landmark for Sri Lanka’s economic governance. With accurate, timely data, policymakers can better allocate resources, target subsidies and design programmes that reflect real needs, he said.

He stressed that responsible use of the newly released data will be key to shaping future development strategies and aligning them with the Sustainable Development Goals (SDGs).

“We must ensure no one is left behind. Granular data — disaggregated by age, gender and location — must be used to make inequities visible and actionable, Wangyel said.

While the findings highlight clear risks, Wangyel said Sri Lanka can also turn the shift into a strategic advantage by building a “silver economy” — industries and services designed to meet the needs of an ageing population, such as healthcare, elderly care, wellness and technology-driven services.

“With the right investments and policies, Sri Lanka can turn its demographic transition into an opportunity for innovation and inclusive growth, he said.

By Ifham Nizam

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Business

Ceylinco Life agent among three global finalists for award

Published

5 hours ago

2026/09/27

Thilina Walpola

Ceylinco Life’s Ambalantota branch agent AIP Manjula

Ceylinco Life’s Ambalantota branch agent AIP Manjula has been named one of three global finalists for the prestigious Insurance Agent of the Year award at the 11th Asia Trusted Life Agents & Advisers Awards (ATLAA) 2026.

The recognition places a Sri Lankan insurance professional among the finalists in a regional field spanning South Asia, Southeast Asia, East Asia and the wider Asia-Pacific region.

Ceylinco Life said the achievement reflected the calibre and customer-focused approach of its agency force, while recognising Manjula’s professionalism and commitment to policyholders.

The award evaluates insurance agents on criteria extending beyond sales performance, including ethical conduct, client service, policy persistency, digital adoption, innovative practices and contributions to the insurance industry and community.

The awards are organised by Asia Advisers Network and Asia Insurance Review, with LIMRA as co-organiser. An independent judging and balloting process is monitored by KPMG as the official scrutineer. The judging panel comprises senior insurance executives, association presidents and industry experts from across the Asia-Pacific region.

Business

CEAT Kelani retains AA+ rating for sixth year

Published

5 hours ago

2026/09/27

Thilina Walpola

CEAT Kelani Holdings (CKH) has retained its National Long-Term Rating of ‘AA+(lka)’ with a Stable Outlook from Fitch Ratings for the sixth consecutive year, reflecting the company’s financial resilience and leading position in Sri Lanka’s pneumatic tyre market.

The ‘AA+(lka)’ rating, the second-highest on Fitch’s national scale, indicates a very strong capacity to meet financial commitments.

Fitch said CKH’s established market leadership and resilient financial profile remained key strengths, while noting its exposure to price-sensitive, cyclical and highly competitive markets.

The Stable Outlook reflects expectations that the company will maintain its market position despite rising input costs and increasing competition from imported tyres, while preserving adequate credit metrics during periods of weaker earnings and higher investment.

Fitch expects CKH’s established brand, extensive dealer network and adaptive pricing strategies to support its market position. Planned production facility upgrades are also expected to improve product quality, particularly in the radial tyre segment.

The rating agency expects near-term pressure on margins from higher raw material and energy costs but said the company’s low leverage and sound liquidity would provide a cushion.

CKH Chairman Chanaka De Silva said the rating reinforced the company’s focus on disciplined financial management, operational adaptability and long-term investment.

Business

Rivon Agriglobe introduces ZETOR tractors, Rover e-bikes

Published

5 hours ago

2026/09/27

Thilina Walpola

Chief Guest Nalin Welgama (left) lighting the traditional oil lamp at the event

Rivon Agriglobe and Rivon Lanka, affiliated with Celogen Lanka, Assidua Technologies and Kelun Lifesciences, have introduced ZETOR and Agriglobe tractors, the Z-Tukoba power tiller and Rover electric motorcycles to the Sri Lankan market.

The new range was launched at a special event held on September 4 at the Sannasa Hotel in Dambulla, attended by more than 120 dealers from across the country.

The event was graced by Nalin Welgama as Chief Guest, together with Rishi Kumar, Managing Director; WH Roshan, Finance Director; Sadish Kumar, Director; Sumith Nandana, General Manager; Suresh Dhammika, Head of Sales; and Jayasuriya, Operations Manager.

The agricultural machinery range includes the 50-horsepower ZETOR HORTUS 50 and Agriglobe 50 tractors and the Z-Tukoba power tiller, offering what the company described as European-engineered technology for Sri Lankan farmers.

The launch also featured the recognition of Rover E-Bike dealers, highlighting the company’s efforts to expand its island-wide dealer network and promote electric mobility.

The companies said the new models would be available through their growing dealer network across Sri Lanka, providing customers with access to agricultural machinery and electric motorcycles.