Business

Rising School Dropouts: The Plight of Estate Children in Sri Lanka

Published

4 years ago

2022/11/18

By Himani Vithanage

Although Sri Lanka has performed well in basic education indicators such as a high literacy rate and near-universal participation in primary and secondary schooling, there are striking disparities across regions in the country. Specifically, the education performance of the estate sector consisting of plantation communities is dismal, with a high level of school dropouts. Based on a study carried out by the Institute of Policy Studies of Sri Lanka (IPS), this blog discusses the issue of school dropouts in the estate sector and how prolonged school closures following the COVID-19 outbreak and the ongoing economic crisis have increased school dropouts in estate regions.

School Dropouts in the Estate Sector

A sector-wise comparison of school dropouts prior to the COVID-19 outbreak reveals the estate sector to have the highest percentage of dropouts in all three levels of education – primary, secondary and collegiate – with the percentage rising as the level of education advances from primary to the collegiate level, as observable from figure 1. As such, approximately 4% of primary, 20% of secondary, and 26% of collegiate students had dropped out of school in the estate sector. In contrast, the corresponding rates in urban and rural sectors are much lower, reflecting the disparity across sectors.

Although Sri Lanka’s primary education is almost universalised, the estate sector is lagging. Around 13% of all school dropouts in the estate sector are from primary grades, suggesting that a considerable proportion of dropouts in the region may not even have completed their primary level of education, which is an issue of concern. The high percentage of dropouts beyond primary level could be attributed mainly to the fact that many schools in estates are Type 3 schools with only primary grades, which discourages many estate children from advancing into lower secondary grades as they have to enrol into schools far away from the estates. For instance, in Nuwara Eliya district, which has one of the largest estate sectors in the country, 50.2% of schools are Type 3 schools (School Census, 2020), which influences many children to drop out of school after completing their primary education due to the lack of schools with higher grades in the region.

Given the high level of school dropouts in the estate sector, the IPS study identifies estate children in higher grades, those from extended family households, those from indebted households, those from low-income households, whose fathers have low education qualifications, whose mothers live away from home (abroad or outstation), those who spend more time on housekeeping activities, and those who engage in economic activities to be more likely to drop out of school.

Impact of Child Labour on School Dropouts in the Estate Sector

Notably, the prevalence of child labour in a community is revealed to significantly impact estate children dropping out of school. While those considered under child labour are children within the age group 5-17, the finding that around 58% of estate sector school dropouts in this age group engage in or seek to engage in economic activities indicates how child labour influences estate children to drop out of school.

While Sri Lanka is committed to attaining the goal of zero child labour by 2025, as set in the Sustainable Development Goals agenda, eliminating child labour would solve this issue of school dropouts to a certain extent. However, ever since the COVID-19 pandemic emerged, along with the ongoing economic crisis in the country, this goal of eliminating child labour by 2025 has become even more challenging. Evidence suggests that the number of children engaging in economic activities has increased significantly in these estate regions after the pandemic that led to prolonged school closures.

School Dropouts after COVID-19

“There were 56 O-Level students in our school, but when school reopened after the pandemic, only 36 students returned to school. The remaining 20 students were found to be doing jobs. So, we teachers had to go from house to house to meet their parents, and we could only persuade the parents of six students to send them back to school while the others dropped out and continued to do jobs. There were similar cases in grades 6-10 as well.” – School teacher in the estate sector

During pandemic school closures, online classes were the main mode of education for estate children despite it not being viable among them. As such, the lack of access to devices (smartphones, laptops etc.), signal and network coverage issues, along with the financial difficulties they faced, have hindered many children in plantation communities from attending online classes. Concerningly, there is evidence that a segment of those students that had no/low attendance for online classes during that period continue not to attend school even though schools are now reopened and that such students have either dropped out or are currently at the risk of dropping out of school.

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Business

Sri Lanka educates women but keeps many out of work, ADB warns

Published

18 hours ago

2026/06/5

Thilina Walpola

Shannon Cowlin - ADB Country Director for Sri Lanka

Sri Lanka has one of the most educated female populations in South Asia, yet only about one in three women participates in the labour force, making female workforce participation among the lowest in the region and leaving a significant source of economic growth untapped.

That paradox took centre stage at a knowledge forum organised by the Asian Development Bank (ADB) in Colombo on June 3, where government officials, labour authorities, academics and private-sector leaders examined the deep-rooted barriers preventing women from fully participating in the economy and explored reforms needed to unlock their economic potential.

Opening the event, ADB Country Director for Sri Lanka Shannon Cowlin said the issue extends beyond gender equality and has become a critical economic challenge for a country seeking sustained growth and inclusive development.

“Empowering women to participate fully in the labour force is not only a matter of equality; it is essential for inclusive economic growth and poverty reduction in Sri Lanka,” she said.

The forum, held under ADB’s Serendipity Knowledge Programme (SKOP), focused on findings from a recent ADB-supported study exploring the factors behind Sri Lanka’s persistently low female labour force participation.

Cowlin noted that despite notable progress in education and human development, Sri Lanka continues to lag behind on measures of gender equality and women’s economic participation. She said multiple studies have shown that the factors shaping women’s labour force participation are layered, interconnected and multidimensional.

According to the study, many women remain concentrated in informal, low-paid and insecure employment with limited access to social protection and few opportunities for career advancement. Social and cultural expectations continue to place primary caregiving responsibilities on women, often restricting their ability to pursue careers or remain in full-time employment.

The lack of affordable childcare services, unequal access to digital skills and technology, concerns over workplace safety, sexual harassment and inadequate transport options were identified as major obstacles preventing women from entering or remaining in the workforce.

“These are complex challenges that require action from all stakeholders – government, development partners, the private sector, civil society and academia,” Cowlin said.

She stressed that improving women’s labour force participation would require more than isolated policy interventions, calling instead for structural transformation, stronger infrastructure and care services, progressive workplace practices and broader societal changes that improve women’s mobility, safety and economic agency.

The event featured a presentation by Professor Dileni Gunawardena of the University of Peradeniya, who shared findings from ADB’s study on female labour force participation, followed by a panel discussion involving representatives from the International Labour Organisation, the Department of Labour, MAS Holdings and John Keells Holdings.

Panelists discussed measures to improve the enabling environment for women, including greater investment in the care economy, expanded childcare facilities, enhanced skills development, creating safe, supportive workplaces and career pathways for upward mobility.

Participants agreed that increasing women’s participation in the workforce is not merely ‘a nice to have’ but an economic necessity, particularly as Sri Lanka seeks to accelerate recovery, boost productivity and achieve more inclusive growth.

The ADB said Sri Lanka’s economic recovery presents a unique opportunity to address long-standing structural barriers facing women and to build a more inclusive labour market that fully utilises the country’s human capital.

By Sanath Nanayakkare

Business

ComBank offers exclusive financial solutions to the ‘Guardians of the Skies’

Published

19 hours ago

2026/06/5

Thilina Walpola

Hasrath Munasinghe, Chief Operating Officer of Commercial Bank and Air Vice Marshal Rajinth Jayawardena, Director General Welfare of the SLAF exchange the agreement in the presence of representatives of the two organisations.

Reinforcing its commitment to those who serve the nation, the Commercial Bank of Ceylon has entered into a Memorandum of Understanding with the Sri Lanka Air Force (SLAF) to introduce a comprehensive suite of concessionary financial facilities for its officers and other ranks.

The partnership, unveiled in a year that marks the 75th anniversary of the Air Force, which was founded in March 1951 as the Royal Ceylon Air Force, reflects a shared recognition of the critical role played by the SLAF as the steadfast ‘Guardians of the skies,’ entrusted with safeguarding the country’s security and sovereignty.

Under the terms of the agreement, Commercial Bank will extend a range of specially tailored financial products to SLAF personnel, including personal loans, leasing facilities, housing loans and credit cards. These facilities will be offered at concessionary interest rates, alongside concessions on documentation charges, enabling Air Force personnel to access financial support on more favourable terms.

The Bank said the initiative is part of its continuing efforts to deliver best-in-class lending solutions that are both accessible and responsive to the diverse needs of its customers. By offering attractive and affordable repayment structures, the scheme is designed to empower SLAF officers and other ranks to meet their personal financial requirements with greater ease and flexibility.

A key feature of the programme is the ability for beneficiaries to align repayments with their income patterns, ensuring that the facilities remain practical and sustainable over the long term. This flexibility, combined with preferential pricing, is expected to make a meaningful difference to the financial wellbeing of Air Force personnel and their families.

Business

Treasury Bill rate hike compounds stock market volatility

Published

19 hours ago

2026/06/5

Thilina Walpola

The CSE was extremely volatile yesterday mainly due to external and internal negative factors.

‘The escalation of the war situation in West Asia and the proposed tariff hike on Sri Lanka’s exports to the US by the Trump administration are worsening Sri Lanka’s economic woes. Further, the government’s decision to increase the Treasury Bill rate has also created some uncertainty in the market, stock analysts said.

The All Share Price Index was up by 249.83 points, while the S and P SL20 rose by 67.61 points. Turnover stood at Rs 2.79 billion with 11 crossings.

Companies that mainly contributed to the turnover by way of crossings were: Chevron Lubricants 1.5 million shares crossed to the tune of Rs 294 million and its shares traded at Rs 196, TJ Lanka 2.9 million shares crossed for Rs 90.8 million; its shares traded at Rs 31, Citizens Development Business Finance 2.5 million shares crossed to the tune of Rs 80.2 million; its shares traded at Rs 32.50.

ACL Cables 634,248 shares crossed for Rs 60.9 million; its shares traded at Rs 96, CCS 438,000 shares crossed to the tune of Rs 57.4 million; its shares traded at Rs 131, Overseas Realties 991,500 shares crossed for Rs 49.6 million; its shares traded at Rs 50 and Access Engineering 653,000 shares crossed to the tune of Rs 49.3 million; its shares sold at Rs 75.50.

In the retail market companies that mainly contributed to the turnover were; Dialog Rs 133 million (3.2 million shares traded), Seylan Bank (Non-Voting) Rs 110 million (1.7 million shares traded), Colombo Dockyard Rs 96.8 million (751,548 shares traded), Ceylinco Holdings (Non-Voting) Rs 77.5 million (516,000 shares traded), Sampath Bank Rs 74.2 million (530,000 shares traded), JKH Rs 74 million (3.7 million shares traded) and LMF Rs 65 million (781,000 shares traded). During the day 123 million share volumes changed hands in 26272 transactions.

It is said that the manufacturing sector, especially Chevron Lubricants and several other firms performed well, while the banking and financial sector performed too.

Yesterday the rupee was quoted flat at Rs 334.50/335.50 to the US dollar in the spot market on, unchanged from the previous day’s close, dealers said, while bond yields were broadly steady.

The telegraphic transfer rate for Sri Lanka’s rupee against the US dollar was Rs 330.50 buying, Rs 339.50 selling; euro was Rs 381.1884 selling, Rs 395.1054 buying; and the pound Rs 442.6620 buying Rs 456.7076 selling.

A bond maturing on 01.08.2030 was quoted at 12.12/20 percent, down from 12.15.25 percent.

A bond maturing on 15.06.2034 was quoted at 13.12/20 percent, down from 13.15/25 percent.

A bond maturing on 15.03.2035 was quoted flat at 13.15/25 percent.

By Hiran H Senewiratne