Human development in the age of AI: Call for inclusive transformation

WE stand at a pivotal moment in our human development journey. For three decades, the Human Development Index (HDI) demonstrated a consistent increase in development progress and a decrease in inequality.

- By Azusa Kubota

However, the poly-crises of 2020-2021 disrupted this trend, and the 2025 Human Development Report (HDR) has quashed the optimism of a swift recovery. Human development progress is decelerating at an alarming rate, and inequality has increased for the fourth consecutive year. With the fast-changing economic orders and conflicts, our future is becoming ever more uncertain.

Sri Lanka's journey in human development has long been one of resilience, ambition, and achievement. In health, education, and life expectancy, we achieved milestones that consistently outperformed expectations, given our size and economic constraints. Yet, the past few years have reminded us that progress is neither linear nor guaranteed. The twin crises of a global pandemic and domestic economic strain disrupted not only our systems, but our sense of forward momentum.

According to the 2025 HDR, Sri Lanka ranks 89th on HDI out of 193 countries and territories. While the HDI rose from 0.757 in 2014 to 0.776 in 2023, the country fell in rankings from 73rd in 2014, indicating fast HDI growth among other counties. Indeed, South Asia experienced the fastest HDI recovery post-pandemic, while Sri Lanka continued to be impacted by the economic crisis. This is underscored by the reduction shown in the inequality-adjusted HDI value between 2021 and 23, suggesting that inequality accounts for an 18% loss in potential human development. The biggest driver of inequality is income; the HDR reports that the poorest 40% of the population holds 18.5% of income, while the richest one percent holds 20.5%. As confirmed by UNDP's 2023 Multi-dimensional Vulnerability Index (MVI) Report, development without equality has a long-lasting impact on the overall human development trajectory.

Promise and responsibility