Sri Lanka’s Demographic Moment: 5.13 Million Young People and a Narrowing Window

But alongside this ageing population, Sri Lanka has something precious: time, but not much of it.

M Roberts, while our population is ageing rapidly, we also have a sizeable generation moving into adulthood and working life. The 10 to 14, 15 to 19 and 20 to 24 age cohorts together account for approximately 5.1 million people, nearly a quarter of the population. They are Sri Lanka’s next generation of workers, entrepreneurs, professionals and taxpayers, with around 1.8 million additional people projected to enter the labour force in the years ahead. And quantitatively, this is not just a large workforce; it is also one of the most educated, globally connected and digitally skilled generations Sri Lanka has produced. Department of Examinations data show that G.C.E. O/L pass rates reached 73.5% in 2024, while English-language pass rates have risen from 48% to 74% over the past decade, and more than 67% of G.C.E. A/L students now meet university entrance standards.

For an ageing country, this is a rare economic opportunity. But a demographic dividend is not automatic. If these young people enter an economy that cannot create enough productive jobs and businesses, the opportunity could quickly become a source of economic pressure, pushing more people into underemployment or overseas migration. Sri Lanka needs to create approximately 1 million new jobs and 100,000 new businesses to meaningfully absorb this generation. That requires an economy where businesses can invest and grow, entrepreneurs can build, workers can move into more productive sectors, and young people can find opportunities to build their futures here. The window is open, but it will not remain open forever. Sri Lanka needs to reform now, while we still have the people to power the growth we want.

The generations coming behind today’s youth are considerably smaller. As fertility continues to decline, Sri Lanka’s future workforce will eventually begin to shrink. At the same time, the number of older Sri Lankans will continue to grow. The window of opportunity we have today will not remain open forever.

Sri Lanka therefore faces a difficult but simple choice. We can use this moment to build a more productive, dynamic and prosperous economy, or we can allow this demographic opportunity to pass us by and confront the consequences of an ageing population with a weaker economic base.

We need to become richer before we become older.

That means creating the conditions for people and businesses to prosper today so that Sri Lanka is better prepared for the demographic realities of tomorrow.

This is why economic reform matters. And this is why the work of Advocata Institute matters.

Advocata works to champion the economic reforms Sri Lanka urgently needs. We engage policymakers, businesses, researchers, and other stakeholders, produce evidence-based research, contribute to policy debates and bring complex economic issues into the public conversation through our multilingual platforms.

Because reform cannot happen in policy rooms alone. People need to understand why reform matters. They need to see the connection between economic policy and the opportunities available to them. And policymakers need independent research and public engagement to help turn difficult ideas into meaningful change. The demographic challenge makes this work more urgent than ever.

The researchers behind Advocata’s demographic analysis, Anushka Kuruppu and Nishthula Subasinghe, are part of the very generation whose future is at stake. Anushka holds a Master’s degree in Economics from Monash University in Australia, while Nishthula is studying at NYU Abu Dhabi.

M Roberts,  they are examples of the talent Sri Lanka must strive to retain. Sri Lanka cannot afford to lose the young people who have the skills, knowledge and ambition to help solve its most difficult problems. Building and retaining this talent requires institutions that can provide space for rigorous research, independent thinking and meaningful policy engagement.

Advocata is one such institution. But institutions like Advocata cannot do this work alone. They depend on people who believe that better policy is possible, that economic reform can improve lives, and that Sri Lanka’s future is worth investing in.

Your support helps us do this work.

When you support Advocata, you are supporting independent research. You are supporting public education. You are supporting the young researchers who are asking difficult questions about Sri Lanka’s future. And you are supporting the push for reforms that can create jobs, businesses, and opportunities for the generation that will inherit this country.

Sri Lanka’s demographic window is open. But it will not stay open forever.The question is not whether Sri Lanka will grow older. It will. The question is whether it will become more prosperous before that happens. If you already haven’t, support Advocata in building the economic foundations Sri Lanka needs for the future.

With the hope of building a Sri Lanka that is more prosperous, more open to opportunity, and ambitious enough to give its young people reasons to build their futures here.

Warm regards,

Dhananath Fernando
Chief Executive Officer,
Advocata Institute.