Sri Lanka must urgently address widening labour shortages across export industries or risk constraining production and foreign exchange earnings, the National Chamber of Exporters (NCE) warned.
The chamber, which represents about 700 companies, said a large share of its members was struggling to recruit and retain employees across skill levels and job categories. The shortages extend beyond construction and are particularly acute in export-oriented manufacturing and agriculture, where specialised technical expertise is required.
“A business operating with only around half its required workforce can barely function. If staffing falls further, closure may become the only realistic option. Under these conditions, it is difficult to see how Sri Lanka’s export targets can be achieved,” the NCE said.
The chamber called for a coordinated response covering workforce participation, industry-focused training, employee retention and labour mobility. It also backed a regulated mechanism allowing companies to recruit foreign workers for vacancies that cannot be filled locally, stressing that overseas talent should complement rather than replace Sri Lankan workers.
Sri Lanka’s labour force participation rate stood at 49.2 percent in the first quarter of 2026, while unemployment was 3.7 percent. Youth unemployment was substantially higher at 16.1 percent, with female unemployment exceeding male unemployment across all age groups.
The NCE said these figures did not fully reflect the difficulty businesses faced in sourcing workers with the required skills or retaining employees after investing in their training.
The shortage has been compounded by outward migration. Some 143,087 Sri Lankans have left for overseas employment so far this year, while the Sri Lanka Bureau of Foreign Employment is targeting 250,000 overseas placements during 2026.
The Labour Ministry has received Cabinet approval to draft an inward labour migration policy, which is expected to introduce mechanisms for assessing professional qualifications, issuing work permits and identifying specialised skills unavailable locally.
The NCE urged the government to move quickly on the policy while strengthening links between industry, education and vocational training to prepare local workers for emerging export-sector requirements.
NCE warns labour shortages threatening SL’s export growth
