World Bank issues warning on growing skills shortage in Sri Lanka

•  Says it is expected to escalate as country aspires to achieve full upper-income status
•  New report says employers face challenges in finding skilled workers within country
•  Asserts education plays a crucial role in developing human capital and promoting social stability
•  Says upgrading, reskilling and upskilling initiatives are required across all sectors

By Shabiya Ali Ahlam 
As Sri Lanka is transitioning from a rural-based to a modern, urbanised economy, with better jobs being created, specially in services, the World Bank yesterday warned that skill shortages are likely to worsen.
This challenge is expected to escalate as the country aspires to achieve the full upper-income status. 
According to the World Bank’s new report titled ‘Enhancing Skills in Sri Lanka for Inclusion, Recovery and Resilience’, the employers cannot find enough skilled workers and few workers are entering the job market with the appropriate skill training. 

“The country’s economic development depends on social stability and education plays a crucial role in developing the human capital and promoting the social stability required for development, especially given the country’s history of ethnic-based secessionist conflict and its current social strife,” the report said.
The report is part of the continuous advisory services and analytical efforts conducted by the World Bank education team in Sri Lanka. 
Its purpose is to provide information to the National Planning Department of the Government of Sri Lanka regarding the status of service delivery in the 
skills sector. 
The report highlighted that a small proportion of workers enter the job market with adequate skill training. Specifically, it noted that only 20 percent of the approximately 450,000 students completing grade 11 in a typical academic year proceed to higher education, while one-third of the remaining students opt for technical and vocational education and training (TVET). 
The report further highlighted that nearly half of employers believe the TVET system falls short in equipping graduates with sufficient practical skills and timely knowledge, including proficiency in English communications and computer and digital literacy. 
The employers expressed concerns about the insufficient cognitive skills (reading, writing and numeracy) of workers, particularly for highly 
skilled occupations. 

“Skills development is crucial to Sri Lanka’s economic transformation and global competitiveness. To become globally competitive, Sri Lanka’s workforce must gain the technical competencies and higher-order cognitive skills needed in domestic and foreign labour markets,” the World Bank said. 
Some of the skills required include working knowledge of English, digital skills and soft or transferable skills. 
“To bolster livelihoods, upgrading, reskilling and upskilling are needed across the board,” it said.