📈 Sri Lanka Unemployment Edges Up to 4.0% in Q2 2026

Sri Lanka’s unemployment rate rose to 4.0% in Q2 2026 (up from 3.8% YoY and 3.7% in Q1), driven by expanded labour force participation outpacing job creation, according to provisional DCS data. • Overall Labour Force Figures • Total Employed: 8.25 Mn (+0.9% YoY / +73,578 jobs) • Labour Force: 8.59 Mn; participation rate rose to 50.0% (vs. 49.3% YoY) • Unemployed Population: Estimated at 340,240 people • Sector Breakdown • Industry (manufacturing, construction, mining, utilities): 2.25 Mn employed (+9.3% YoY / +190,945 jobs); record 27.3% employment share • Services: 4.06 Mn employed (+1.4% YoY) • Agriculture: 1.93 Mn employed (-8.2% YoY / -173,568 jobs) • Gender & Demographics • Women: Drove all net job gains with female employment rising 4.7% YoY to 2.85 Mn (+127,991 jobs). Participation reached 32.7%, though female unemployment remained high at 6.1%. • Men: Male employment fell 1.0% YoY to 5.39 Mn, with unemployment rising to 2.8%. • Youth & Education: Under-30s accounted for 72% of all unemployed. Rate for 25–29-year-olds climbed to 12.1% (19.7% for women in this bracket). A/L-qualified or higher accounted for 49% (165,361) of total jobseekers, with an unemployment rate of 6.7%. • Employment Mix Private sector hired 3.82 Mn, own-account workers stood at 2.63 Mn, and public sector employed 1.13 Mn (13.7% of total).