Investing in Human Resources and Reforming the Labour Market

Abstract

The Economic Statement of October 2016 presented by the Prime Minister envisages increasing the growth rate of the Sri Lankan economy to 7 percent with the objective of doubling per capita incomes by 2025. Given that the Sri Lankan economy is closely integrated with the rest of the world, achieving a sustained average growth rate of 7 percent will only be possible if the country manages to stay competitive in the global market. With the graduation to low middle income status and rising wages, continuing to compete on cheap labour is no longer a viable option for Sri Lanka. Instead, the country will need to facilitate and improve market sophistication and efficiency to improve productivity and competitiveness of the economy.