By: Staff Writer
May 02, Colombo (LNW): Sri Lanka is set to conduct its first Economic Census in over a decade, a long-overdue move that is expected to reshape the country’s economic policy framework. The Cabinet of Ministers has approved the census to be held in two stages—focusing on agricultural activities in 2025, followed by a comprehensive survey of non-agricultural sectors in 2026.
This initiative marks a pivotal step in addressing Sri Lanka’s urgent need for reliable, up-to-date economic data. The last census, conducted in 2013/14, preceded a series of profound national and global disruptions, including the 2019 Easter bombings, the COVID-19 pandemic, and the unprecedented 2022 sovereign debt default. These events have significantly altered the country’s socio-economic fabric, rendering existing data obsolete and inadequate for policy formulation.
The economic fallout from these crises highlighted the dangers of policymaking in the dark. Without current data, policymakers struggled to identify vulnerable populations, accurately assess employment patterns, or target fiscal support where it was needed most. In this context, the new census promises a much-needed empirical foundation for Sri Lanka’s recovery, reform, and long-term development.
The first phase of the census will zero in on agriculture—a sector employing approximately 25% of the national workforce but plagued by inefficiencies, climate-related vulnerabilities, and inconsistent access to inputs like fertiliser. Timely and granular data can enable targeted reforms in food security, water management, rural income protection, and climate adaptation—areas where one-size-fits-all policies have historically failed.
The 2026 phase will cover the services and industrial sectors, which have emerged as engines of post-crisis recovery, particularly tourism, manufacturing, and IT. However, the high prevalence of informal employment—estimated by the International Labour Organisation at 60%—continues to challenge tax revenue collection, labour market regulation, and social protection systems.
Here, the census could provide critical insights into the structure and distribution of informal work—especially in urban and semi-urban areas—helping authorities design policies that incentivise formalisation, protect workers, and expand the country’s narrow tax base. This could also aid labour reforms aimed at increasing productivity while ensuring basic rights.
Another major benefit is the potential to capture data on emerging sectors and under-reported economic activities—like gig work, digital freelancing, and micro-enterprises—that traditional surveys often overlook. These sectors may not be large in current GDP terms, but they are vital to employment and future growth.
The timing of the census is also strategic, as Sri Lanka implements a reform program supported by the International Monetary Fund (IMF). The insights from the census can be aligned with IMF-backed fiscal targets, allowing for more balanced and equitable policy choices. For example, understanding regional income disparities could inform decentralised budgeting or targeted subsidies.
Crucially, this census must be more than just a data-gathering exercise—it must lead to action. Accurate statistics are essential, but if they are not swiftly translated into responsive, evidence-based policies, the effort risks becoming another missed opportunity in the country’s long road to recovery.
