📈 Sri Lanka Q1 2026 Unemployment Edges Down to 3.7%

Sri Lanka’s unemployment rate fell marginally to 3.7% in Q1 2026 from 3.8% YoY, according to provisional data from the Department of Census and Statistics. However, the overall labour force participation rate (LFPR) eased by 0.5 percentage points to 49.2%. • Labor Force & Participation: The total labour force stood at 8.41 Mn (5.40 Mn men, 3.01 Mn women). While male participation dropped to 69.1% (from 70.1% YoY), female participation improved to 32.5% (up from 32.0% YoY). • Sector Breakdown: Employed persons totaled 8.10 Mn. The services sector remained the primary employer at 50.4%, followed by industry at 25.9% and agriculture at 23.7%. Non-agricultural activities accounted for 76.3% of total employment. • Gender & Youth Disparities: Unemployed persons reached 311,495. The female unemployment rate (6.1%) was over double the male rate (2.4%). Youth unemployment (ages 15-24) remained high at 16.1%, rising to 19.2% for women. • Education Insights: Joblessness was highest among individuals with GCE Advanced Level qualifications and above, sitting at 6.5%. This trend is significantly more severe for educated women (9.7%) compared to men (3.2%).