By: Staff Writer
April 27, Colombo (LNW): Sri Lanka is entering a decisive demographic turning point, one that could quietly reshape its economic future far more than any short-term fiscal crisis. The latest population data reveals not just how many people live in the country, but who they are and more importantly, who will be missing from the workforce in the years ahead.
The population now stands at 21.78 million, but the real story lies in its ageing structure. Nearly 18% of citizens are over 60, while the child population has fallen to just over one-fifth. With an Aging Index of 87, the country is approaching a balance where the elderly nearly match the young a stark reversal from past decades.
This shift is driven by a persistently low fertility rate of 1.3, well below the level needed to sustain population replacement. At the same time, the median age has climbed to 35, signaling a society that is no longer youthful but steadily maturing. The implications are clear: a shrinking pipeline of future workers and a rising burden on those who remain economically active.
However even within the existing working-age population, inefficiencies are glaring. Although 61.3% of Sri Lankans fall within working age, less than half actively participate in the labour force. Structural barriers—not a lack of opportunity alone are at play. Many women remain outside formal employment due to caregiving responsibilities, while a significant portion of men are still in prolonged education or lack market-ready skills.
Compounding this issue is a cultural and technological shift among younger generations. Increasingly absorbed in mobile phones and social media, many youths are disengaged from skill-building pathways that lead to productive employment. Digital literacy may be rising, but it does not necessarily translate into technical competence or professional readiness. This creates a paradox: a connected generation that is not fully equipped to contribute meaningfully to economic growth.
Meanwhile, the country faces a growing social care burden. Over 640,000 people live alone, with a majority being elderly women. Chronic illnesses are widespread, particularly among older populations, placing further strain on healthcare systems and public finances.
However, within this challenge lies an overlooked opportunity. Sri Lanka’s elderly population is not merely dependent it is also experienced, skilled, and potentially invaluable. Many retirees possess decades of professional, technical, and administrative expertise that remain untapped.
Countries like Japan have demonstrated how ageing societies can still thrive economically by integrating senior citizens into advisory and mentorship roles. In Japan, retired professionals actively support policymaking, corporate governance, and skills transfer, ensuring that institutional knowledge is not lost.
Sri Lanka could adopt a similar model. By creating structured platforms for retired engineers, teachers, administrators, and industry experts to mentor younger workers and advise government initiatives, the country could bridge its growing skills gap. Such engagement would not only reduce dependency but also reinforce institutional continuity.
The census ultimately presents a warning but also a roadmap. Without intervention, demographic trends could constrain growth and strain public resources. With strategic thinking, however, Sri Lanka can transform its ageing population into an asset, ensuring that experience complements youth rather than replaces it.