🇱🇰 Sri Lanka Labour Market Mismatch & Policy Choices 📊

A recent debate over raising the minimum age for three-wheeler drivers highlights deeper issues in Sri Lanka's labour market, emphasizing incentives over restrictions. • Labour Market Stats (Q1 2026): - Overall Unemployment: 3.7% - Labour Force Participation: 49.2% - Youth Unemployment (Ages 15–24): 16.1% - Unemployment (Ages 25–29): 11.8% - Educated Unemployment (A me/A/L+): 6.5% • Key Insights: - Drivers prefer three-wheelers for income, flexibility, and independence over factory or construction jobs. - IPS research highlights that driving occupation choices must be respected; sectors facing vacancies in manufacturing or construction need to improve wages and working conditions to attract youth. - Structural economic reform requires transparent policy, evidence-based trade-offs, and addressing low productivity rather than limiting occupational freedom.