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Krishani
Krishani
Oct 05 2026
25Sri Lanka’s unemployment rate has risen to 4% in the second quarter of 2026, with young people continuing to face the toughest challenge in finding jobs, according to the Department of Census and Statistics.
The latest figure is up from 3.8% in the second quarter of 2025 and 3.7% in the first quarter of this year.
The number of unemployed people was estimated at 340,240 during the quarter.
According to Data, women recorded a considerably higher unemployment rate of 6.1%, compared to 2.8% among men, while the highest unemployment rate was recorded among those aged between 15 and 24.
Commenting on the situation, Economics Professor at the University of Peradeniya, Prof. Wasantha Athukorala told Daily Mirror that the lack of large-scale recruitment into the public sector was one factor contributing to the situation.
“Every three to four years, graduates are recruited into the public sector in large numbers for positions such as development officers and teachers. However, in recent years, there has been no recruitment of graduates on such a large scale,” Prof. Athukorala said.
He also pointed to the continuing difficulties faced by businesses following the 2022 economic crisis.
“Several companies are still recovering from the challenges created by the economic crisis. During that period, a number of employees either lost their jobs or were asked to leave,” he said.
Prof. Athukorala added that the opportunities created in the aftermath of the Ditwah disaster and amid continuing global tensions had not been sufficient to absorb the growing number of job seekers.
“On the other hand, no major job opportunities have been created following Ditwah or amid the global tensions, compared to the number of people seeking employment,” he said.
When Daily Mirror interviewed several unemployed individuals, Nimal Perera, 24, from Kurunegala said “I have applied for several jobs since completing my studies, but most of the vacancies either require previous experience or offer salaries that are difficult to manage with the cost of living,”
Fathima Nazeer, 23, from Wattala said “Even when I get called for interviews, there are many candidates competing for the same position. It is frustrating to spend months looking for work after completing my education,”
Furthermore, Kavindu Fernando, 25, from Negombo said “I am considering going abroad because I cannot find a suitable job here. I want to build my career in Sri Lanka, but there do not seem to be enough opportunities for young people,”
Meanwhile, Sri Lanka’s labour force participation rate increased to 50% in the second quarter of 2026, compared to 49.3% in the corresponding quarter of 2025 and 49.2% in the first quarter of this year.
