How SL's 'demographic slowdown' could snag future economic growth

As Sri Lanka navigates its IMF-led reforms and seeks to rebuild fiscal stability, the United Nations Population Fund (UNFPA) has warned that the country's demographic slowdown marked by falling birth rates and an ageing population could emerge as a major long-term constraint on economic growth and labour productivity.

- BY IFHAM NIZAM

UNFPA Officer-in-Charge Phuntsho Wangyel

Releasing the preliminary findings of the 2024 Census of Population and Housing in Colombo, UNFPA Officer-in-Charge Phuntsho Wangyel said Sri Lanka's population now stands at 21.76 million, reflecting an increase of just 1.4 million since 2012. The country's annual growth rate has fallen to 0.5 percent, underscoring a demographic transition with profound fiscal and economic implications.

"The message is clear fewer babies are being born. This slowdown, combined with low fertility and rapid ageing, signals a significant shift in Sri Lanka's age structure, Wangyel said.

He warned that the demographic changes could affect the labour market, productivity and public finances, urging policymakers to plan ahead to ensure long-term economic resilience.