The World Bank’s latest projections deliver a sobering warning: Sri Lanka’s economy is set to grow at a sluggish 3.5% in 2025, slipping to 3.1% in 2026. For a nation still scarred by the 2022 economic crisis, such anaemic growth threatens prolonged hardship, failing to deliver the jobs, poverty reduction, or stability Sri Lankans need. Meanwhile, India, our regional neighbour, is projected to achieve robust growth of 6.3% to 6.8% over the same period. Sri Lanka must aim to match this momentum, targeting at least 6.5% growth to transform its economic future. This demands a national commitment to faster growth through a dynamic work culture, modernised labour policies, and a skilled, inclusive workforce. The time for half-measures is over—Sri Lanka must act boldly to ignite rapid economic progress.

The Cost of Stagnation

The World Bank’s forecast of 3.5% growth in 2025 and 3.1% in 2026 signals a dangerous trajectory. At this pace, Sri Lanka risks a vicious cycle of economic fragility, with insufficient investment to spur job creation, persistent unemployment, and stagnant wages. Youth unemployment, at 25% in 2024, could worsen, fuelling frustration and social unrest. Rural communities, reliant on agriculture and remittances, face declining incomes, exacerbating inequality and limiting access to healthcare and education. Women, who make up 35% of the workforce, are disproportionately affected, with many trapped in low-paying, informal jobs, perpetuating gender disparities. Small businesses, employing over 45% of the workforce, struggle under high costs and low demand, stifling entrepreneurship.

Macroeconomic challenges compound these issues. Low growth sustains Sri Lanka’s high public debt burden, estimated at 110% of GDP in 2024, limiting fiscal space for social programmes or infrastructure. Without faster growth, the nation remains vulnerable to external shocks, such as commodity price spikes or global recessions, and internal discontent could erode social cohesion. Sri Lanka’s potential—its strategic Indian Ocean location and educated population—will remain untapped unless bold action is taken. Rapid growth is not just an economic goal; it is a social and moral imperative to restore hope and opportunity for all Sri Lankans.

Productivity is the engine of faster growth. Sri Lanka’s workforce, while capable, is hindered by inefficiencies, outdated labour practices, and skill gaps. By focusing on three pillars—cultivating a dynamic work culture, reforming labour policies, and empowering a skilled workforce—Sri Lanka can unlock the productivity needed to break free from stagnation.

Cultivating a Dynamic Work Culture

A vibrant work culture is the foundation of faster growth. In Sri Lanka, inefficiencies persist across sectors. Public sector workers often face low accountability, with absenteeism and lack of performance metrics draining resources. In traditional industries like tea and garments, reliance on low-skill models stifles innovation. To drive rapid growth, Sri Lanka must foster a culture that values efficiency, initiative, and merit.

Leadership must set the example. Government and private sector leaders can launch campaigns like “Proudly Productive Sri Lanka” to promote productivity as a national priority. Spotlighting local heroes—tech entrepreneurs scaling startups, farmers adopting sustainable practices, or public servants streamlining services—can inspire change. Regional programmes, such as productivity workshops in Galle or Jaffna, can engage local communities. Private sector examples, like John Keells Holdings implementing performance-driven cultures, show how incentives can transform workplaces. Small businesses, critical to the economy, can benefit from recognition programmes, such as awards for innovative retailers or artisans, motivating others to improve efficiency.

Schools should teach adaptability, problem-solving, and a strong work ethic, preparing students for a global economy. Incentives, such as merit-based promotions in the public sector or performance bonuses in private firms, can drive effort while ensuring fairness. Rewarding high-performing teachers or healthcare workers could improve service delivery, boosting long-term productivity. By cultivating a work culture rooted in merit and results, Sri Lanka can pave the way for faster growth.

Reforming Labour Policies

Sri Lanka’s labour dynamics often undermine productivity. Trade unions, while vital for protecting worker rights, have historically wielded significant influence, often prioritising short-term gains over long-term economic health. Since the 1970s, union-led strikes have disrupted critical sectors like transport, healthcare, and education, costing Sri Lanka an estimated 1% of GDP in 2023 alone due to lost productivity and investor confidence. Public sector rigidity, including resistance to modernisation, further hampers efficiency. To achieve faster growth, Sri Lanka must reform its labour policies to balance worker protections with economic flexibility.

Collaboration is essential. The government can establish tripartite councils involving unions, businesses, and policymakers to design policies that align worker welfare with economic goals. Creating independent arbitration boards to resolve disputes before strikes escalate would minimise disruptions while respecting workers’ rights. Introducing flexible work arrangements, such as part-time or contract roles in tourism and IT, would attract global firms and create jobs for young Sri Lankans. Simplifying business regulations, such as reducing licensing delays from months to weeks and clarifying tax policies, would create a business-friendly environment, encouraging investment in high-growth sectors like technology and logistics. These Sri Lanka-specific reforms, grounded in local realities, would drive productivity without compromising fairness.

Empowering a Skilled, Inclusive Workforce

Skill shortages are a major barrier to Sri Lanka’s growth, as highlighted by the World Bank. Despite high literacy, many workers lack the technical and digital skills needed for high-value industries. To achieve faster growth, Sri Lanka must invest in human capital, ensuring its workforce is equipped for modern economic demands.

Vocational training programmes, tailored to sectors like IT, renewable energy, and advanced agriculture, are critical. Establishing coding academies in Colombo and Kandy, in partnership with private firms, could prepare thousands for tech jobs. Community training centres with affordable internet can teach digital skills like e-commerce and data analysis, empowering rural and urban workers alike. Special programmes for women, who face barriers in accessing technical training, can increase their participation in high-growth sectors, promoting gender equity. Funding these initiatives through public-private partnerships and international grants ensures scalability.

Retraining workers in traditional sectors is vital to diversify the economy. Garment workers could learn advanced manufacturing techniques, while farmers could adopt precision agriculture to boost yields. To combat brain drain, which sees skilled Sri Lankans leave for better prospects, the government could offer tax incentives for professionals starting businesses, ensuring merit-based opportunities. By building a skilled, inclusive workforce, Sri Lanka can drive the productivity needed for faster growth.

Strengthening the Economic Ecosystem

Faster growth requires a supportive ecosystem. Investing in infrastructure—digital networks, ports, and energy grids—is critical to enhance connectivity and productivity. Expanding 5G and data centres can position Sri Lanka as a hub for IT and business process outsourcing, creating thousands of jobs. Upgrading ports like Trincomalee and modernising rail networks can connect rural economies to urban markets, boosting trade. Solar and wind projects, leveraging Sri Lanka’s natural resources, would ensure reliable energy for high-growth industries while reducing import costs.

A national export strategy, focusing on value-added products like organic spices, high-quality cinnamon, or eco-tourism, can drive growth, as recommended by the Asian Development Bank. Targeting markets in Europe and the Middle East, where demand for sustainable products is rising, could increase foreign exchange earnings. Simplifying trade regulations and offering incentives for high-value sectors would attract investment, reinforcing a business-friendly environment. Transparent governance and merit-based policies in these initiatives promote fairness and build investor confidence.

Overcoming Barriers

Driving faster growth will face challenges. Shifting work culture takes time, and unions may resist labour reforms. Political populism and budget constraints could hinder investments in skills and infrastructure. Public campaigns linking productivity to higher wages and better living standards can build support. Engaging unions through dialogue ensures their concerns are addressed, fostering collaboration. Redirecting inefficient subsidies to education, training, and infrastructure, while seeking international grants, can address funding gaps. Transparent, merit-based implementation will maintain public trust and ensure equitable outcomes.

Seizing the Opportunity

The World Bank’s projections of 3.5% growth in 2025 and 3.1% in 2026 demand urgent action. Sri Lanka cannot afford stagnation. By fostering a dynamic work culture, modernising labour policies, empowering a skilled workforce, and strengthening the economic ecosystem, Sri Lanka can achieve the rapid growth needed to transform its future. This is about building a nation where every Sri Lankan has access to opportunity and prosperity. The 2022 crisis exposed the cost of inaction; the World Bank’s projections underscore the need for bold change. Let us act decisively to forge a prosperous future for generations to come

The writer is Professor of Marketing University of Surrey. Views expressed in this article are personal.

by Professor Chanaka Jayawardhena
Chanaka.j@gmail.com

Nothing pleases me more than being greeted with Ayubowan by the smiling face of a beauty clad in a bright blue saree, every time I board a SriLankan Airlines Airbus to fly to Sri Lanka, which I was forced to leave during the second JVP uprising during which people were executed for doing their duty. Perhaps, SriLankan may outlast me as I am already in the departure lounge of my life! The million-dollar question is how long. Though my fervent wish is for SriLankan Airlines to flourish as a global carrier with repute, a potential it once had, omens predict otherwise. Some of the best who worked for the predecessors of SriLankan have ventured out to build very successful airlines. Successive governments have been grappling with the question as to what could be done to the loss-making carrier; ditch it or continue to fly for prestige?

One of the key decisions of the NPP government was to let SriLankan continue as a state venture. For the Marxist-orientated JVP, perhaps, any input from the private sector is an anathema although most successful airlines are private sector entities. Many countries that had state-owned carriers have opted for privatisation for reasons of economy, only countries with vast wealth to buy aircraft outright being able to maintain state airlines. Emirates Airlines, owned by a super-rich Gulf state, which started in 1985 with only two aircraft on wet-lease from Pakistan International Airlines, is a giant in aviation today. So is Qatar Airways, which started operations only in 1994 and is owned by another super-rich Gulf state. On the other hand, the UK handed over British Airways to the private sector a long time ago and India handed over Air India back to the original owners, the Tata Group in 2021. Despite the setback of the recent downing of the 787 Dreamliner, Air India is bound to prosper as the modernisation of the fleet goes on at an unbelievably rapid pace. In early 2023, Air India ordered 250 new jets from Airbus and 220 from Boeing, the largest order in modern times. The Airbus order was increased by another 100 in December 2024. This order exceeds the total fleet strength of Emirates and Qatar combined!

True to form, the NPP government made one hell of a show with the new acquisition to the SriLankan fleet, bringing the total number of aircraft to 23. Some communiques gave the false impression that it was a brand-new aircraft bought by the airline, flypast down the West coast on its way from Airbus headquarters in France to BIA adding to the show. One can understand the water-jet welcome to any acquisition but the rest of the celebrations was well over the top. It transpires that the ‘new’ Airbus A330 is actually a refurbished 14 years old aircraft, originally owned by Garuda Indonesian Airways for 12 years and then by a now-defunct South Korean Carrier. It was not bought either but is on a dry-lease. It is said that the order was placed by the previous government! NPP seems very adept at taking credit for the actions of others and to excel in words!

I have been on board a brand-new aircraft during its inaugural flight. A grateful patient of mine, who happened to be a travel agent, passed on his invitation for the maiden voyage of a new Swissair aircraft on the Zurich to London sector. I cannot recollect the type of the narrow-body jet, as it was so long ago, but I distinctly remember that there was no tamasha at all, the only difference to a routine flight being the addition by the captain that it is a brand-new aircraft in his welcome announcement! SriLankan, as well as its predecessors have added brand new aircraft to the fleet but I cannot remember any tamashas like this. In fact, SriLankan was the first Asian airline to operate the four-engined Airbus A340 in 1994.

SriLankan can trace its ancestry to Air Ceylon, which was established in 1947 as the state-owned flag carrier which ceased operations in 1979, to be replaced by Air Lanka. Rebranding as SriLankan happened when Emirates Airlines took a 43% share of Air Lanka together with a 10-year management contract. With the end of the management contract SL government decided to buy back the shares, more due to political reasons. Though there was an operational profit during the Emirates period, it is claimed that SriLankan lost in many other ways to Emirates including valuable routes.

Srilankan could have been a success story, if not for political interference, the worst offence being handing over the chairmanship to those without adequate experience. JRJ appointed a pilot to the top job whilst Mahinda appointed his brother-in-law. Some CEOs were totally corrupt, one of them hitting the headlines when Airbus settled a graft scandal with British authorities. Worst crime, among his many others including the idiotic agreement on Hambantota port by Ranil on SriLankan Airlines was the cancellation of the order to purchase four A350 aircraft, one of the most advanced aircrafts in the skies. Perhaps, he cancelled the order to spite the Rajapaksas rather than renegotiating to buy a fewer number instead of paying hefty cancellation charges with no aircraft. If the cost involved in establishing service facilities for a new type of aircraft was deemed unjustified, SriLankan could have purchased the A350s and dry-leased them, using the funds to dry-lease a few more A330s to expand services. Puny actions of this nature together with rampant corruption at the top has made SriLankan Airlines a liability to the nation. The previous government had drawn plans for a sale and there were interested parties. AKD decided that SriLankan should remain a state venture and appointed a person from one of the interested parties as the new chairman. If he steadies the ship and the IMF demands that SriLankan be privatised as a condition of one of the future tranches, a miracle could happen!

by Dr Upul Wijayawardhna

All the print and electronic media report that a huge branch of a large tree has fallen on a school in Balangoda, killing a 17-year-old student and causing severe injuries to 16 students.A mother of a student whose son is studying with the victim, giving a voice cut to the media disclosed in a heart-rending story that the repeated reminders on this hazardous threat made to the Principal and the Regional Education Office for the last five years have not been heeded to until this tragedy claimed the life of an innocent student.

This is not the first time that students have perished in the school premises. A sixth-grade student died when a discarded iron pipe of a soccer goal post fell on his body at Thopawewa Maha Vidyalaya, Polonnaruwa. Senith Wijesinghe, a bright student at Ananda College, Colombo, perished on the spot when the turf roller fell on his body. Another student at Wellampitiya Maha Vidyalaya met his untimely death when a part of the parapet wall connected to the water pipeline fell on his body. Another unfortunate death of a student was reported from the south when a Hume pipe brought for road development work rolled out accidently killing a student in the school premises.

A careful analysis of the statistics of fatal and grave accidents to students disclose a shocking revelation. According to NHSL, 2,691 schoolchildren have been treated, out of which 274 were related to accidents in the school premises. Health Ministry sources say that 10,000 to 20,000 students are being treated for accidents annually.

Educational authorities should bear in mind that parents send their children to school on the basic premise that the school provides an accident free safety environment to their children. School Principals as well as the Regional/Zonal Education Directors have an inalienable duty to provide this basic protection to the students, leave aside the education. What the Education Ministry and the Department should do is not to resort to knee-jerk reaction when a fatal accident occurs and issue precautionary guidelines. Their hunky-dory attitude does not bode well for the wellbeing of the student community. What is required is a well-planned institutional strategy to face this calamitous situation.

My recollection says that the Ministry of Education had issued directions by way of circular instructions to the Zonal Education Directors to visit schools periodically and identify the hazardous situations and unsafe structures and trees with a view to taking on the spot remedial measures. If the authorities heeded such directives, the life of a Balangoda student could have been thwarted.

This short note would not be complete if it does not cover the numerous safety hazards frequently confronted by the student community in a school setting. In laboratories where students are called upon to deal hazardous chemicals. They should not be mixed together and stored separately. Students should handle chemicals under the direct supervision of the teachers. Unsafe and unregulated pits and trenches should be identified and barricaded with tiger tapes immediately with prominent wordings and luminous colors. Unsafe old structures such as old buildings, rusted iron structures, unsafe roofs and materials, heavy rollers should be identified and they should be immediately discarded/dismantled before such structures cause any harm to the students.

During sports activities- dehydration and heart related injuries should be prevented by proper re-hydration and avoiding vigorous outdoor practices in hot sun during hot periods of the year. In this country, school athletic meets and big matches are held in the month of February and March during which period, heat temperament is relatively unbearable. For long distance running, medical certificates from a medical doctor should be mandatory.

School principals are the custodian of the children’s safety and a competent safety team should be formed to avoid unsafe accidents with the collective support of the teachers and school prefects. The creation of a safety conscience and culture should be inculcated across the board. When questioned by a Principal of a leading girl’s school in Nugegoda, she was very complacent about the safety arrangements of the school by delegating this function to a lady PTI instructor, which is most unsatisfactory. The Principal or the Vice Principal should personally and directly take over this prime responsibility. It is utmost paramount to analyse everything from a safety eye and the PTI is woefully lacking this trait.

Last but not least, I could render my support to the Prime Minister who is in charge of the Education to create a hazard free safety environment in the schools with the expertise I have obtained locally and globally for over five decades voluntarily. What I emphasise for the hazard-free school environment is that the safety aspect should be institutionalised within the main system of education. It would be a desirable step to establish a safety branch in each Zonal Education Zone, considering the adverse trend of tragic accidents. Essentially the present adverse trend of accidents in schools has to be arrested as a utmost priority.

It is much regretted that my comprehensive article published in a leading newspaper have not had the desired effect for the last six months.

J. A. A. S. Ranasinghe
Productivity Specialist and Management Consultant
(The writer can be contacted a49@gmail.com)