- The International Monetary Fund is a key stakeholder in the economic recovery of Sri Lanka.
- The Institute of Policy Studies advises on economic recovery strategy for Sri Lanka.
Sri Lanka labor market shows weak recovery despite unemployment rate returning to 2019…
What happened
Dr. Pulasthi Amarasinghe presented the Institute of Policy Studies' report, Sri Lanka State of the Economy 2026. The report found that while the unemployment rate in Sri Lanka returned to 4.4% in 2024, labor force participation and real wages have not recovered to 2019 levels. The Institute of Policy Studies noted that labor productivity fell 0.5% between 2019 and 2024, and 66.5% of employed workers are in the informal sector.
From ft.lk
Why it matters
The Institute of Policy Studies stated that the return to pre-crisis unemployment levels is a misleading measure of recovery. The findings highlight structural issues, including youth unemployment at 22% and a significant wage gap between formal and informal workers in Sri Lanka.
The Institute of Policy Studies advises on economic recovery strategy for Sri Lanka, a process in which the International Monetary Fund is a key stakeholder.
From ft.lk
Who's involved
- Institute of Policy StudiesConducted research and presented findings on Sri Lanka's economy
- Sri LankaThe country whose labor market and economy were analyzed
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The entities involved
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Institute of Policy Studies
economic policy research institute in Sri Lanka
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